On 15 July 2020, HM Treasury published a draft statutory instrument, The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (draft SI) together with an explanatory memorandum.
The Fourth Anti-Money Laundering Directive (4MLD) was implemented in the UK primarily through the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Certain provisions in the 4MLD were amended by Directive 2018/843 (Amending Directive). The vast majority of these provisions were transposed by the Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018 and the Money Laundering and Terrorist Financing (Amendment) Regulations 2019.
The Amending Directive made changes to Article 31 of the 4MLD in relation to the registration of beneficial ownership of express trusts. It required Member States to set up an expanded register of express trusts by 10 March 2020. The UK has missed the transposition deadline. The draft SI is being made to update the MLRs to comply with obligations arising under EU law which, under the Withdrawal Agreement, still apply to the UK during the transition period. The other changes concern correspondent banking, reporting of discrepancies in beneficial ownership information, customer due diligence on publicly listed companies, the use of confidential information, registration deadlines for some firms and directions to cryptoasset businesses.