ECSH21075 - Amendments to Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017)

Amendments to MLR 2017 affecting HMRC

Legislation	When	Key amendments include
Payments Services Regulations (PSR) 2017	13 January 2018	Replaced references to the PSR 2009 with references to the PSR 2017. Moved the definition of a Telecommunication Digital and IT Payment Service Provider (TDITDPSP) from the PSRs to the MLRs.
The Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018 (SI 2018/1337)	10 January 2019	Amends Regulation 99 on appeals against decisions of the Commissioners. Requires HM Treasury to carry out a review of regulatory provision and publish a report setting out the conclusions of the review.
European Union (Withdrawal) Act 2018. Money Laundering and Transfer of Funds (Information) (Amendment) (EU Exit) Regulations 2018 (SI 2019/1511)	Exit day (31 January 2020)	EU references removed, and the statutory requirement to consider European Supervisory Authorities (ESA) guidelines no longer applies.
The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (SI 2019/1511)	10 January 2020	AMPs and LABs now in scope and required to comply with specific CDD measures. Amends Schedule 4 of the MLR 2017 in relation to information to be collected by supervisory authorities. Gives powers for supervisory authority to publish information on the suspension or cancellation of a business’ registration if it considers it proportionate. MSBs and TCSPs are not allowed to trade until their application for registration has been determined. Supervisory authorities must provide one or more secure communication channels for persons to report breaches and take reasonable measures to ensure that the identity of the reporting person is known only to the supervisory authority. Obligation of confidentiality for supervisory authorities. HMRC must check whether person has relevant criminal convictions before imposing sanction under Reg 76, 77 or 78. Extends the duty to apply Enhanced Due Diligence (EDD) under Reg 33(1)(b) to any relevant transaction where either party is established in a high-risk country and sets out the EDD measures that must be taken for the purposes of Reg 33(1)(b).
The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (SI 2020/991)	Laid before parliament 15 September 2020. Parts 1 to 3 came into force on 6 October 2020. Regulation 7(2)(a) came into force on 6 April 2021. Regulation 5 on1 September 2022. Part 4 came in to force 31 December 2020 (Implementation Period completion day)	Regulation 45ZB broadens access to information held by HMRC in the trust register to third parties who have demonstrated a legitimate interest in the beneficial ownership of a trust.
The Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 (SI 2021/391)	26 March 2021	Schedule 3ZA inserted to list 21 high-risk third countries. For more information, please see ECSH64830. Commission Delegated Regulation (EU) 2016/1675 revoked.
The Money Laundering and Terrorist Financing (Amendment) (No. 2) (High-Risk Countries) Regulations 2021 (SI 2021/827)	13 July 2021	Amendments made to Schedule 3ZA high-risk third countries. Total of 24 countries on the amended list. For more information, please see ECSH64830.
The Money Laundering and Terrorist Financing (Amendment) (No. 3) (High-Risk Countries) Regulations 2021 (SI 2021/1218)	2 November 2021	Amendments made to Schedule 3ZA high-risk third countries. Total of 25 countries on amended list. For more information, please see ECSH64830.
The Money Laundering and Terrorist Financing (Amendment) Regulations 2022 (SI 2022/137)	9 March 2022	No major changes for HMRC supervision.
The Economic Crime (Anti-Money Laundering) Levy Regulations 2022 (SI 2022/269)	1 April 2022	Part 5 makes provision about the assessment, payment, and collection of an Economic Crime Levy where the appropriate collection authority is HMRC Commissioners. ECS does not collect the Economic Crime Levy - for more information see the Economic Crime Levy Manual. Regulation 13 states that a person liable to pay the levy must make a return and pay the levy on or before 30 September following the financial year for which the liability arises. It must contain such information and declaration that is to the best of persons knowledge, correct and complete. Regulation 14 states that amendments can be made any time up to 12 months after due date.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2022 (SI 2022/393)	29 March 2022	Substitutes the list of high-risk third counties in Schedule 3ZA for a new list. For more information, please see ECSH64830.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations 2022 (SI 2022/782)	11 July 2022	Amendments made to Schedule 3ZA high-risk third countries. For more information, please see ECSH64830.
The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (SI 2022/860)	1 September 2022	Regulation 3(1) updated definition of “terrorist financing” to remove outdated reference to Terrorist Asset-Freezing etc Act 2010 (TAFA). Regulation 4(2) extended the meaning of business relationship to also include the activities in 12(2)(a) forming a firm; (b) director, company secretary, etc. and (d) trustee of an express trust, nominee shareholder etc. whether the relationship is otherwise expected to have an element of duration. The wording in 12(2)(a) has changed from forming a company to forming a firm (so formation of partnerships etc are in scope). Regulation 16A inserted requiring the Treasury to publish a Proliferation Financing (PF) risk assessment. The first PF National Risk Assessment was published on 23 September 2021. Regulation 18A inserted on risk assessment by relevant persons in relation to PF. Businesses must conduct a PF risk assessment, taking account of the NRA of proliferation financing. Regulation 19A inserted on policies, controls and procedures in relation to PF. PCPs must include PF risk management, internal controls and monitoring of compliance. Regulation 14 amended to clarify that the MLRs do not apply to artists who sell their own works of art directly to the customer. Exclusions - Regulation 15(3)(f) updated to include AMPs - Regulation 52 widens information and intelligence sharing gateways, including making provision to cover certain functions undertaken by Department for Business, Energy and Industrial Strategy (BEIS) and Companies House (CH). Supervisory authorities can require supervised persons to provide copies of SARs submitted. Reporting of material discrepancies. Added the obligation for relevant persons to report material discrepancies to the registrar, where a discrepancy is found in information obtained and that on the register, when establishing a business relationship or through ongoing monitoring and/or CDD.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023 (SI 2023/704)	27 June 2023	Amendments made to Schedule 3ZA high-risk third countries. For more information, please see ECSH64830.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023 (SI 2023/1306)	5 December 2023	Amendments made to Schedule 3ZA high-risk third countries. For more information, please see ECSH64830.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2024 (SI 2024/69)	23 January 2024	Replaced Schedule 3ZA with direct reference to the lists published by the Financial Action Task Force (FATF): “High Risk Jurisdictions Subject to a Call for Action” and “Jurisdictions under Increased Monitoring”. Regulation 33(3)(a) amended to define high risk third countries to the definition above. For More information, please see ECSH64830.