The EU’s 5th Money Laundering Directive (AMLD5) came into force on 10 January 2020, amending the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
The Legal Sector Affinity Group (LSAG), which includes the Law Society and all the legal sector supervisors named in the anti-money laundering regulations, has published a summary of changes brought in by AMLD5.
The changes include:
- a duty to collect proof of registration for entities (for example trusts and companies)
- a duty to inform the registry of any discrepancies in their information
- changes to client due diligence and enhanced due diligence.
LSAG is currently redrafting its full guidance on the regulations. This will require the approval of HM Treasury and will be published in the coming months.