On 11 March 2024, HM Treasury (HMT) published a consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs), which place requirements onto a range of businesses to identify and prevent money laundering and terrorist financing.

HMT committed to consulting on changes to the MLRs as part of a wider programme of work aimed at reducing money laundering, which was set out in the Economic Crime Plan 2023-2026. The consultation primarily covers issues with the MLRs that have already been identified by HMT, such as in the 2022 Review of the UK’s anti-money laundering (AML) and counter-terrorist financing (CTF) regulatory and supervisory regime, which found a number of technical changes that could potentially be made to increase effectiveness and ensure proportionality for regulated firms and customers. It also covers issues put forward by key stakeholders, such as the AML/CTF supervisors, the regulated industries and their representative bodies, which could reduce burdens and make the regulations more effective at tackling economic crime.

The consultation covers four core themes:

  1. Making customer due diligence more proportionate and effective.
  2. Strengthening system coordination.
  3. Providing clarity on the scope of the MLRs.
  4. Reforming registration requirements for the Trust Registration Service. 

Cost of Compliance Survey

In parallel with the consultation, HMT is running a survey on the cost of compliance with the MLRs. The survey aims to help HMT to understand better how regulated businesses comply with the regulations and to assess the impact of future changes to the MLRs. Responses are invited from a wide range of regulated businesses, including large firms, SMEs and sole traders.   

The consultation and survey close on 9 June 2024.