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 MLR2017.
The Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018 (SI 2018/1337)	10 January 2019	Amends regulation 99 MLR 2017 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	Art Market Participants and Letting Agency Businesses now in scope and required to comply with specific customer due diligence 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. Money Service Businesses and Trust or Company Service Providers 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 the business or person has a relevant criminal conviction before imposing a sanction under regulations 76, 77 or 78 MLR 2017. Extends the duty to apply enhanced due diligence (EDD) under regulation 33(1)(b) MLR 2017 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 regulation 33(1)(b) MLR 2017.
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 MLR 2017 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 MLR 2017 inserted, listing 21 high-risk third countries. For more information, please see here. Commission Delegated Regulation (EU) 2016/1675 revoked. See here.
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 MLR 2017 high-risk third countries. Total of 24 countries on the amended list. For more information, please see here.
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 MLR 2017 high-risk third countries. Total of 25 countries on amended list. For more information, please see here.
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. EC-S 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 MLR 2017 for a new list. For more information, please see here.
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 MLR 2017 high-risk third countries. For more information, please see here.
The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (SI 2022/860)	1 September 2022	Regulation 3(1) MLR 2017 updated definition of “terrorist financing” to remove outdated reference to Terrorist Asset-Freezing etc Act 2010 (TAFA). Regulation 4(2) MLR 2017 extended the meaning of business relationship to also include the activities in regulation12(2)(a) MLR 2017 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 regulation 12(2)(a) MLR 2017 has changed from forming a company to forming a firm (so formation of partnerships etc are in scope). Regulation 16A MLR 2017 inserted requiring the Treasury to publish a proliferation Ffinancing (PF) risk assessment. The first PF National Risk Assessment (NRA) was published on 23 September 2021. Regulation 18A MLR 2017 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 MLR 2017 inserted on policies, controls and procedures (PCPs) in relation to PF. PCPs must include PF risk management, internal controls and monitoring of compliance. Regulation 14 MLR 2017 amended to clarify that the MLR 2017 do not apply to artists who sell their own works of art directly to the customer. Exclusions - regulation 15(3)(f) MLR 2017 updated to include AMPs - Regulation 52 MLR 2017 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 Suspicious Aactivity Reports 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 customer due diligence.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023 (SI 2023/704)	27 June 2023	Amendments made to Schedule 3ZA MLR 2017 high-risk third countries. For more information, please see here.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023 (SI 2023/1306)	5 December 2023	Amendments made to Schedule 3ZA MLR 2017 high-risk third countries. For more information, please see here.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2024 (SI 2024/69)	23 January 2024	Replaced Schedule 3ZA MLR 2017 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) MLR 2017 amended to define high risk third countries to the definition above. For More information, please see here.