New regulations simplify the process of updating the UK’s list of ‘high-risk’ countries in respect of which businesses are obliged to conduct enhanced due diligence for anti-money laundering purposes. Those requirements apply in relation to any business relationships and any relevant transactions a business has which involve a country on the list.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations, SI 2024/69, amend the principal Anti-Money Laundering Regulations, SI 2017/692 to remove Sch 3ZA which currently provides the list of high-risk jurisdictions. Instead, the enhanced due diligence requirements will now apply in relation to countries named on the Financial Action Task Force’s own list. In other words, the treasury will no longer need to issue regulations every time the FATF updates its own list of high-risk jurisdictions. The rationale here was that the UK always maintained parity with the FATF so it made sense to simplify the process – although it should be noted that the UK retains the ability to add or remove countries by exception (via regulations) if it chooses to do so in the future. The regulations came into force on 23 January 2024.
New regulations simplify the process of updating the UK’s list of ‘high-risk’ countries in respect of which businesses are obliged to conduct enhanced due diligence for anti-money laundering purposes. Those requirements apply in relation to any business relationships and any relevant transactions a business has which involve a country on the list.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations, SI 2024/69, amend the principal Anti-Money Laundering Regulations, SI 2017/692 to remove Sch 3ZA which currently provides the list of high-risk jurisdictions. Instead, the enhanced due diligence requirements will now apply in relation to countries named on the Financial Action Task Force’s own list. In other words, the treasury will no longer need to issue regulations every time the FATF updates its own list of high-risk jurisdictions. The rationale here was that the UK always maintained parity with the FATF so it made sense to simplify the process – although it should be noted that the UK retains the ability to add or remove countries by exception (via regulations) if it chooses to do so in the future. The regulations came into force on 23 January 2024.
