The Joint Money Laundering Steering Group (JMLSG) has published final guidance for consumer credit firms relating to their compliance with their anti-money laundering (AML) obligations, following its earlier consultation in January 2014.

The guidance amends the JMLSG’s anti-money laundering and counter-terrorist financing (AML/CTF) guidance for the financial services sector by inserting a new chapter 11a (consumer credit providers) into the sector-specific guidance in Part II.

The guidance covers:

  • typical products that are most at risk from money laundering (ML) and terrorist financing (TF) both in relation to secured and unsecured lenders;
  • the amounts of money that is likely to be in question;
  • how to assess these ML & TF risks;
  • further detail on how to collect appropriate information on due diligence;
  • how to verify the identity of private individuals and non-personal customers;
  • outsourcing due diligence verification to third parties;
  • how to deal with suspicious transactions; and
  • staff awareness and training, both of which were common themes in the FCA’s recent thematic reviews.

The guidance was approved by the JMLSG board on 11 March 2014. It contains a note stating that it is incomplete on its own and should be read in conjunction with the main guidance set out in Part I.

View JMLSG guidance – Chapter 11a – consumer credit providers, 20 March 2014