On 19 December 2024, the Financial Markets Standards Board (FMSB) published as final its Standard for Client Onboarding: Documentation and Processes and Annexes.

The Standard has been drafted to allow onboarding firms to continue to fully apply the UK’s Risk Based Approach to know-your-customer and provides more granular, documentary guidance for the practical implementation of the UK Money Laundering Regulations.

Myles McGuinness, FMSB CEO, said:

“Today’s publication marks the launch of the first Standard in final form under the auspices of our Post-Trade Committee, which took on the important role of practically implementing the recommendations of the Bank of England’s Post-Trade Taskforce.”

The Joint Money Laundering Steering Group added:

“The Joint Money Laundering Steering Group (JMLSG) notes the publication of the FMSB Standard for Client Onboarding (Standard). Firms should continue to refer to JMLSG Guidance (as it is HM Treasury approved guidance) on how to comply with the UK Money Laundering Regulations (MLRs). Firms may find the Standard helpful for their client onboarding processes. Firms should also note that the use of the Standard alone would not be a way of following the JMLSG Guidance or of meeting their obligations under the MLRs.”