The changes are to the UK’s Money Laundering Regulations 2007 and follow a review which took place during 2009 and 2010 and a consultation published in June last year which set out 17 proposed changes to existing regulations.
Specifically, the changes will apply to businesses that are at low risk of money laundering and terrorist financing and therefore not required to be regulated to the same extent as other institutions. The government estimates that the changes, which will come into force on 1 October, will save UK firms around £3m per year.
Speaking in July when the government published the final proposals, commercial secretary, Lord Sassoon said: “The government is committed to maintaining a robust and proportionate anti-money laundering regime.
“The measures that I am announcing today make some important changes to improve the effectiveness of the UK’s regime, whilst including a number of deregulatory changes that follow a lengthy consultation with industry and the money laundering supervisors. This is a win-win result: reduced red tape costs for business but with more effective outcomes.
“The government will continue to monitor the UK’s regime for its effectiveness and proportionality in line with the Government’s commitment to reducing burdens on British businesses.”
