UK Amends Domestic PEP Legislation, FinCEN Issues Beneficial Ownership Final Rule, and AUSTRAC Provides New Reporting Guidance

An amendment to the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 will come into force on January 10th. It will impact the treatment of domestic politically exposed persons (PEPs). Specifically, the amendment states that domestic PEPs and their relatives must be treated as “inherently lower risk” than non-domestic PEPs. The government says the timing of the new requirement is related to the fact that “legitimate concerns continue to be raised that a number of holders of prominent public positions have encountered problems accessing financial services due to their status as Politically Exposed Persons under the Regulations, as have their family members.” Disproportionate or overly frequent requests for information about personal financial matters are one example provided in the Treasury minister’s statement.?

The Financial Crimes Enforcement Network (FinCEN) has issued a final rule stating how law enforcement, financial institutions, and regulators can access information in the US government’s forthcoming beneficial ownership (BOI) database. Federal and state agencies may request information with court authorization. Judges and prosecutors will also have access, alongside financial institutions and regulators, when required to meet customer due diligence requirements.?

Finally, AUSTRAC has published the questions it will ask supervised entities in their 2023 compliance reports, which must be submitted by March 31, 2024. Questions relate to various topics, including the outsourcing of AML/CTF controls, when the program was last reviewed, and the training provided to staff.?

Until next week,

Andrew Davies

Global Head of Regulatory Affairs, ComplyAdvantage