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
