Just as the Money Laundering Regulations 2017 are starting to bed in, along come the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, which enshrine the provisions of the European Union’s fifth Money Laundering Directive (5MLD) into British law.

These are now bound by the Money Laundering Regulations 2019.

• All express trusts (not just those with a UK tax implication) including those which own land or property in the UK or have business relationships with British entities such as solicitors, accountants and banks. Examples of the trusts now included are discretionary trusts, bare trusts, charitable trusts, employee ownership trusts. In addition, some trusts now have to be registered with the Trust Registration Service (an online service set up by HM Revenue & Customs). There are various deadlines for registration that depend upon the status of the trust. The onus is on the trustees to deal with the registration; they face stringent penalties if they fail to do so.
• Crypto-asset businesses. This category covers crypto-exchanges, automated teller machines or ATMs that use cryptos, peer-to-peer crypto-providers, issuers of new crypto-assets (perhaps through Initial Coin Offerings or ICOs), publishers of certain open-source software (e.g. non-custodian wallet providers) and custodian wallet providers. MLD5 now defines a crypto-asset as a “digital representation of value that can be digitally transferred, stored or traded and is accepted as a medium of exchange.” In addition, such businesses that are already in existence must be registered in the UK by the Financial Conduct Authority by 10 January 2021. New business must register before conducting any business.
• Art traders. This includes auction houses or other intermediaries and galleries. It applies to works of art that cost more than €10,000 or £8,580.
• Letting agents. These are included wherever rent for a property exceeds €10,000 or £8,580 per month.
• Tax advisors. This category now includes anyone who provides material aid or assistance/advice on the tax affairs of others.

2019 saw a record year for British regulators investigating breaches of the Money Laundering Regulations and handing out punishments. This phenomenon can only increase because the UK is keen to be seen to be a clean place in which to do business in the post-Brexit world. Firms that fall within the AML compliance regime – new or old – ought to be alive to their obligations and the consequences of failing to meet them.

* Nicola Finnerty can be reached on +44 (0)20 7566 5270 or at nfinnerty@kingsleynapley.co.uk