MLR 2017 – Estate Agents – How It Will Affect You? Part 2

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In This Second Part Of “Money Laundering – Estate Agents” We Finish Off How You Will Be Impacted

Part 5 – Beneficial ownership information

This section applies to bodies corporate and to trustees. It requires corporate bodies to provide detailed information to a relevant person when taking part in a relevant transaction with a relevant person (regulation 42) and requires trustees to inform the relevant person of their status and to provide information to them, and to law enforcement authorities (regulation 43). The trustee is under additional requirements to hold certain information and provide information to the Commissioners for Her Majesty’s Revenue and Customs (” the Commissioners”) in certain circumstances. The Commissioners are under a requirement to hold the information that has been received from the trustee in a register (regulation 44).

Firms must have established risk and control self-assessment procedures in place.

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Who Must Register – Money Laundering Supervision for Estate Agents 
MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
Money Laundering Supervision for Estate Agents – Fees

Part 6 – Money laundering and terrorist financing: supervision and registration

This section makes provision in regard to supervisory authorities and registration of relevant persons. It states that supervisory authorities are subject to a duty to cooperate with other supervisory authorities, the Treasury and law enforcement authorities and a duty to collect information and facts. Provision is created for the situations in which a supervisory authority may disclose information it holds for supervisory purposes. Regulations 52 to 59 require the Financial Conduct Authority and the Commissioners to maintain registers of certain relevant persons, and impose corresponding requirements on relevant persons to request registration. The FCA and the Commissioners have powers to suspend or cancel the registration of a relevant person in certain circumstances.

Part 7 – Transfer of funds (information on the payer) regulations

This section lays out the supervisory authorities for a payment service provider and the duties of the supervisory authorities. There are only two supervisory authorities for payment service providers: the FCA and the Commissioners.

Part 8 – Information and investigation

This section gives supervisory authorities information gathering powers (regulations 64 to 67), gives the FCA and the Commissioners further investigatory powers (regulations 68 to 69) and makes provision for the scenario in which these powers may be exercised (regulations 70 to 72).

SUPERVISORY OVERSIGHT
HMRC has increased the size of its supervisory teams for Estate Agents and stated that it will be carrying out an increased number of supervisory visits. It is likely that we will see a significantly greater level of intervention and enforcement after the implementation of MLR 2017. Now is the moment in order to get your ship in order.

Part 9 – Enforcement

This section identifies “relevant requirements” for the purpose of these Regulations and gives the FCA and the Commissioners powers to impose civil penalties on anyone who has contravened a relevant requirement. Regulations 83 to 89 provide for criminal offences where a relevant person has contravened a relevant requirement; prejudiced an investigation or disclosed false or misleading information to the supervisory authorities and make provision in regard to criminal proceedings.

BE WARNED
This section therefore does not impose additional requirements or make changes to the operational nature of what you are doing, but all EABs should take heed of the forewarning that regulators are getting tough on non-compliance and failings.

Part 10 – Appeals

This section provides for an appeal from a decision by the FCA under these Regulations (regulation 90), and for reviews and appeals in connection with decisions of the Commissioners (regulations 91 to 97).

Part 11 – Miscellaneous provisionshmrc-estate-agent-mlr 2017-mld4-gdpr-regulation-mapping

Among other things ensures that charges or penalties imposed by the FCA or the Commissioners may be recovered as a debt in civil courtroom proceedings (regulation 98), ensures that the FCA and Commissioners have the capacity to recuperate the costs of their supervision or enforcement action (regulation 99) and establishes obligations on various public authorities to disclose any suspicions they may have or money laundering or terrorist financing (regulation 100).

Firms must have established risk and control self-assessment procedures in place.

CONCLUSION
The new money laundering regulations represent a substantial change to the way all firms must manage the potential of financial crime. What we see in this version of the regulations has produced significant changes and in this accelerated time-frame requires firms to be proactive.

What should you do?
HM Treasury has left little time for firms to acclimatise to the new regulations and with the June deadline fast approaching, firms must act now to ensure they understand and adopt the new rules in time.

Compliance Consultant can help provide you with the tools you need to implement, train and embed the new rules, and we can move quickly, getting your firm and your people up to speed in a short space of time, including training and awareness.

Call us today on 0207 097 1434 or

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Sign Up For Our Information Service & Get Sent PDFs About How You Are Affected

Check Out Our Other Posts at

Who Must Register – Money Laundering Supervision for Estate Agents 
MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
Money Laundering Supervision for Estate Agents – Fees

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