Further amendments to 2007 Guidance from the Joint Money Laundering Steering Group (12/01)

10 January 2012

Introduction

The Joint Money Laundering Steering Group (JMLSG), is made up of the leading UK Trade Associations in the Financial Services Industry. Its aim is to promote good practice in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations. This is primarily achieved by the publication of industry Guidance.

JMLSG has been producing Money Laundering Guidance for the financial sector since 1990, initially in conjunction with the Bank of England, and latterly to provide regularly updated guidance on the various Money Laundering Regulations in force. JMLSG has periodically reviewed its Guidance, and has made changes and additions as required. An important revision took place in 2003 to reflect the implementation of the Proceeds of Crime Act 2002.

The Process So Far

A major revision of JMLSG's Guidance was published in January 2006, based on a number of fundamental principles - including that of senior management accountability and the adoption of a risk-based approach. The latter allows firms to focus their AML/CTF resources on areas where the risk of money laundering/terrorist financing is higher, and, therefore, embodies proportionate and cost-effective approaches to managing these risks.

JMLSG subsequently amended its Guidance to reflect the provisions of Money Laundering Regulations 2007, which implemented the EU Third Money Laundering directive in the UK.

The Guidance was subject to further minor amendments in 2009, following an internal review, and a new Part III to the Guidance was published in 2010.

After reviewing comments received on the consultation version published in September, JMLSG published at the end of December 2011 final amendments to its December 2007 Guidance, which have been submitted to HM Treasury for Ministerial approval.

The New Guidance

Although the new Guidance will only take over the ‘legal’ status of the existing Guidance once it has been approved by a Treasury Minister, firms are free to use the provisions of the new Guidance immediately, if they wish to do so.

Part I,  Part II & Part III

The amendments proposed in September have been broadly confirmed, and a number of additional, relatively minor amendments have been made. Versions of the revised Parts marked up from the consultation version, are available Part I, Part II & Part III.

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