UK Law & Regulation

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Notes

1. References to commencement of legislation might relate to early provisions entering into force, with other provisions following at a later date
2. Not a complete listing or chronology of applicable law (e.g., does not include all minor/consequential amendments to existing legislation)
3. Legislation listed is generally applicable to England, Wales and Northern Ireland. Some elements may also apply to Scotland (or be reflected in local Scottish law), but differences may exist – For clarification on any aspect of law, we suggest you contact an appropriate legal professional for advice
4. The list of financial restrictions in force in the UK is maintained by the OFSI. The list below does not cover all financial sanctions legislation. To research where ‘sanctions’ appears in the title of Primary and Secondary Legislation – Click ’Sanctions’

2023

The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 1) Regulations 2023, the first commencement regulations made under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). Signed on 13th November 2023.

Regulation 2 - brings ECCTA section 214 into force on 15th November 2023 (so far as not already in force). Section 214 makes clear that the Treasury can impose monetary penalties under the Policing and Crime Act 2017 (c. 3) for breaches of provisions that are supplemental to financial sanctions.

Regulation 3 - brings certain ECCTA provisions into force on 15th January 2024.

• 3(a) to (e) bring into force various ECCTA provisions inserted into the Companies Act 2006 (c. 46) which establish national security-related defences, exemptions and exceptions to new requirements concerning company names, identity verification requirements and false statement offences.
• 3(f) brings into force amendments to the Proceeds of Crime Act 2002 (c. 29) which create exemptions from money laundering offences for regulated businesses dealing with only part of a client’s property.
• 3(g) brings into force the provisions of section 187, which amends particular provisions of the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to allow for regulations concerning enhanced due diligence measures for the purposes of anti-money laundering and counter terrorist financing to be made referencing directly the list of high-risk countries published by the Financial Action Task Force as it has effect from time to time.
• 3(h) brings into force provisions about disclosures of information between certain businesses for the purposes of preventing, detecting or investigating economic crime offences.
• 3(i) brings into force amendments to the Criminal Justice Act 1987 (c. 38) which widen the pre-investigation powers of the Serious Fraud Office so they are not limited to certain bribery and corruption offences.
• 3(j) brings into force Schedule 11 to the Act, which lists “economic crime offences”.

The Economic Crime and Corporate Transparency Act (ECCTA) 2023, received Royal Assent on 26 October 2023. ECCTA content, inter-alia, includes:

• Amendments to the Companies Act 2006 - To transform Companies House to a gatekeeper on information it receives, transitioning away from a passive recipient of information; and
• A new corporate offence of Failure to Prevent Fraud – A strict liability offence of failure to prevent fraud where a large organisation lacks reasonable fraud prevention procedures and an employee, agent or subsidiary commits a fraud offence intending to benefit (whether directly or indirectly) the large organisation.

Under section 201, and for the purposes of section 199(1) and (2) a relevant body is a ‘large organisation’ only if the body satisfied two or more of the following conditions in the financial year of the body that precedes the year of the fraud offence:

Turnover	Balance sheet total	Number of employees
More than £36 million	More than £18 million	More than 250

ECCTA provisions will come into force at a later date to give Companies House and companies, a sufficient time to prepare for the new requirements.

The government is expected to initiate a consultation in 2024 on guidance linked to ‘reasonable fraud prevention procedures’, relevant to the new failure to prevent fraud offence.

The Financial Services and Markets Act 2023, received Royal Assent on 29 June 2023, influencing reforms to regulation of financial services in the UK. Measures relevant to customer due diligence (CDD) include Sec. 77 (Politically exposed persons: money laundering and terrorist financing) which, with regard to domestic Politically Exposed Persons (PEPs), amends Part 3 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). In overview, where a customer is a domestic PEP, or a family member or a known close associate of a domestic PEP — (a) the starting point for assessment under regulation 35(3) of MLR 2017 is that the customer presents a lower level of risk than a non-domestic PEP, and (b) if no enhanced risk factors are present, the extent of enhanced customer due diligence (EDD) measures to be applied in relation to that customer is less than the extent to be applied in the case of a non-domestic PEP. Sec 78 of FSMA 2023 requires the FCA must review its guidance on PEPs given under section 139A of FSMA 2000 and in compliance with the requirements under regulation 48 of MLR 2017. Sections' 77 & 78 entered into force on 29 June 2023

The Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022, raised the threshold amount specified in section 339A of the Proceeds of Crime Act 2002 (c. 29) (POCA), from £250 to £1,000. The threshold amount is the value of criminal property below which a bank or similar firm (a deposit-taking body, electronic money or payment institution) can carry out a transaction, in operating an account for a customer, without committing one of the main money laundering offences in sections 327 to 329 of POCA. Entered into force on 9th March 2022

2022

The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022, amending The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017: Enters into force on various dates. Their effect includes:

• Implementing a Financial Action Task Force (FATF) recommendation, where: (a) The Treasury is required to make arrangements to assess the risks of proliferation financing affecting the United Kingdom; and (b) Relevant persons have an obligation to undertake their own assessment of proliferation financing risk and to maintain policies, controls and procedures to mitigate such risk (NB: This broadly aligns with existing MLR provisions in relation to money laundering and terrorist financing risks);
• Widens the meaning of a trust or company service provider (‘TCSP’) so that it covers the formation of all forms of business arrangement, not just companies and other legal persons;
• Implements an FATF recommendation in respect of cryptoasset transfers, by inserting a new Part 7A (cryptoasset transfers) into the MLRs;
• Clarifies the definition of art market participant does not apply to artists who sell their own works of art over the EUR 10,000 threshold;
• Extends the obligation on relevant persons to report [material] discrepancies to the registrar of companies between information they hold on beneficial ownership of a customer and information on the register;
• Makes clear that supervisory authorities can request suspicious activity reports from their members, to assist in meeting their supervisory functions; and
• Removes account information service providers (‘AISPs’) from MLR scope.

The Economic Crime (Anti-Money Laundering) Levy Regulations 2022 - Entered into force on 1st April 2022. The regulations: (a) make provision about the assessment, payment, collection and recovery of the economic crime (anti-money laundering) levy (‘the levy’) which is charged in accordance with Part 3 of the Finance Act 2022 (c. 3) for the financial year beginning with April 2022 and subsequent financial years (see section 66 of the Finance Act 2022); and (b) require an appropriate collection authority to collect and manage the levy. The appropriate collection authority is either the Financial Conduct Authority, the Gambling Commission or the HMRC Commissioners.

The Money Laundering and Terrorist Financing (Amendment) Regulations 2022 - Entered into force on 9th March 2022. The regulations mainly changed time limits for the registration of trusts but also added further exclusions to the type of trusts which are required to register.

2021

The Global Anti-Corruption Sanctions Regulations 2021 - Entered into force on 26th April 2021. The regulations impose sanctions on persons designated due to involvement in serious corruption or because they are linked to those involved in serious corruption. This regime replaces the Misappropriations (Sanctions) (EU Exit) Regulations 2020 regime concerning misappropriation of state funds from any country outside the UK

The Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 - Entered into force on 26 March 2021 and amends the definition of a high risk third country to those identified in a new Schedule 3ZA of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

2019

The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 - Entered into force on 10 January 2020. Introduced amendments to The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, reflecting requirements of the European Union’s Fifth Money Laundering Directive, (EU) 2018/843 (‘5MLD’). Extended the scope of the regulated sector, made changes to customer due diligence and enhanced due diligence (including a new requirement to report details to Companies House in relation to discrepancy identified between information collected during customer due diligence and information on the Persons with Significant Control register (See also ‘5MLD – FAQ’)

The The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 - Came fully into force on 31 December 2020. They are intended to ensure that [post-Brexit] certain sanctions measures relating to Iran continue to operate effectively. Gives effect to the UK’s obligations under United Nations Security Council Resolution 2231.

The The Russia (Sanctions) (EU Exit) Regulations 2019 - Came fully into force on 31 December 2020. They are intended to ensure that [post-Brexit] certain sanctions measures relating to Russia continue to operate effectively. The sanctions regime is aimed at encouraging Russia to cease actions destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine.

2018

The Sanctions and Anti-Money Laundering Act 2018 (‘SAMLA’) - Some provisions entered into force on 23 May 2018. The Act reduces the risk of the UK breaching international financial sanctions obligations following its withdrawal from the European Union (‘EU’):

• As a member of the United Nations, the UK is required to implement sanctions included in resolutions passed by the UN Security Council
• EU sanctions incorporate UN sanctions requirements. Prior to leaving the EU on 31 January 2020 the UK adopted EU sanctions, which continued for a 12-month transition period, ending on 31 December 2020
• SAMLA provides UK government with powers to operate a UK sanctions regime, which also accommodates implementation of UN sanctions requirements

SAMLA includes provisions relating to:

• The detection, investigation and prevention of money laundering and terrorist financing;
• Implementing Financial Action Task Force (‘FATF’) standards intended to maintain integrity of the international financial system;
• Requiring the Secretary of State to publish reports on progress made towards putting in place a register of beneficial owners of overseas entities; and
• Defining meanings of: “funds”, “economic resources” and “freeze” (sec.60); and “financial services” and “financial products” (sec.61)

From 11.00pm on 31 December 2020 – Implementing UK sanctions regimes is effected via legislation, in the form of regulations made under the SAMLA

For more information on SAMLA see our FAQ

2017

The Criminal Finances Act 2017 - Entered into force in January 2018. Amended the Proceeds of Crime Act 2002. Made provisions in connection with terrorist property; created corporate offences for cases where a person associated with a body corporate or partnership facilitates the commission by another person of a tax evasion offence

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 - Entered into force on 26 June 2017. Transposed much of the European Union’s Fourth Money Laundering Directive, (EU) 2015/849 (‘4MLD’) into UK law

The Policing and Crime Act 2017 (Part 8) created powers for HM Treasury to impose monetary penalties for breaches of financial sanctions

2015

The Serious Crime Act 2015 - Entered into force in May 2015. Its provisions include amending the Proceeds of Crime Act 2002, by providing an exemption from civil liability for money-laundering disclosures (i.e. Where an authorised disclosure is made in good faith, no civil liability arises in respect of the disclosure on the part of the person by or on whose behalf it is made)

2013

The Crime and Courts Act 2013 - Established the National Crime Agency (‘NCA’) to replace the Serious Organised Crime Agency (‘SOCA’). The NCA also absorbed national Financial Intelligence Unit (‘FIU’) responsibilities from SOCA relating to money laundering and terrorist financing

2010

The Bribery Act 2010 - Entered into force on 1 July 2011:

• Contains two general offences covering the offering, promising or giving of a bribe (active bribery) and the requesting, agreeing to receive or accepting of a bribe (passive bribery)
• Created an offence relating to bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business
• Created the corporate liability offence for failing to prevent bribery on behalf of a commercial organisation
• Also enables a commercial organisation to have a full defence if it can show that despite a particular case of bribery it nevertheless had adequate procedures in place to prevent persons associated with it from bribing

The Terrorist Asset-Freezing etc. Act 2010 (‘TAFA 2010’) - Entered into force on 16 December 2010:

• Provided HM Treasury with powers to freeze the funds and economic resources of those suspected or believed to be involved in terrorist activities
• Restricts the making available of funds, financial services and economic resources to, or for the benefit of such persons
• Persons designated under TAFA 2010 or Council Regulation (EC) No 2580/2001 (i.e. specific restrictive measures directed against certain persons and entities with a view to combating terrorism, dated 27 December 2001) are subject to an asset freeze. Financial services cannot be made available to or for their benefit (i.e. includes insurance and banking services)

2008

The Counter-Terrorism Act 2008 - Entered into force on 26 November 2008. Part 5 (Terrorist financing and money laundering) introduced Schedule 7, which:

• Addressed the risks from money laundering, terrorist financing and the proliferation of nuclear, radiological, biological or chemical weapons
• Empowered HM Treasury to issue directions to firms in the financial sector including Money Services Businesses (‘MSBs’)
• Required MSBs in the regulated sector to comply with directions issued by HM Treasury
• Appointed HMRC as an enforcement authority to supervise MSBs, to ensure their compliance with the requirements imposed by any direction

A direction will contain specific legal requirements imposed by HMT on businesses in the financial sector in relation to their transactions or business with:

• a person carrying on business in a country;
• the government of a country;
• a person resident or incorporated in a country

2007

The Terrorism Act 2000 and Proceeds of Crime Act 2002 (Amendment) Regulations 2007 - Entered into force on 26 December 2007. Implemented, in part, the Third Money Laundering Directive, 2005/60/EC, on preventing use of the financial system for the purpose of money laundering and terrorist financing (‘3MLD’). The regulations updated the Terrorism Act 2000 and the Proceeds of Crime Act 2002

The Money Laundering Regulations 2007 - Entered into force on 15 December 2007, replacing the Money Laundering Regulations 2003

The Terrorism Act 2000 (Business in the Regulated Sector and Supervisory Authorities) Order 2007 - Entered into force on 15th December 2007. Amended the meaning of a business in the regulated sector and the meaning of a supervisory authority for the purposes of Part 3 of the Terrorism Act 2000 (terrorist property) by substituting new Parts 1 and 2 of Schedule 3A to that Act. Implemented other parts of 3MLD into UK law

Proceeds of Crime Act 2002 (Business in the Regulated Sector and Supervisory Authorities) Order 2007 - Entered into force on 15th December 2007. Amended the meaning of a business in the regulated sector and the meaning of a supervisory authority for the purposes of Part 3 of the Terrorism Act 2000 (terrorist property) by substituting new Parts 1 and 2 of Schedule 3A to that Act. Implemented other parts of 3MLD into UK law

2006

The Terrorism Act 2006 - Made provision for and about offences relating to conduct carried out, or capable of being carried out, for purposes connected with terrorism; to amend enactments relating to terrorism; to amend the Intelligence Services Act 1994 and the Regulation of Investigatory Powers Act 2000; and for connected purposes

The Fraud Act 2006 - Entered into force on 15 January 2007. Introduced new criminal offences linked to fraud and repealed the following offences:

Theft Act 1968

• Section15 (obtaining property by deception)
• Section15A (obtaining a money transfer by deception)
• Section 16 (obtaining a pecuniary advantage by deception)
• Section 20(2) (procuring the execution of a valuable security by deception)
• Reference to "cheat" in Section 25 (going equipped)

Theft Act 1978

• Section 1 (obtaining services by deception)
• Section 2 (evasion of liability by deception)

2005

The Serious Organised Crime and Police Act 2005 - Established the Serious Organised Crime Agency (‘SOCA’) and made provision about investigations, prosecutions, offenders and witnesses in criminal proceedings and the protection of persons involved in investigations or proceedings; to provide for the implementation of certain international obligations relating to criminal matters; to amend the Proceeds of Crime Act 2002; to make further provision for combatting crime and disorder, including new provision about powers of arrest and search warrants and about parental compensation orders; to make further provision about the police and policing and persons supporting the police; to make provision for protecting certain organisations from interference with their activities; to make provision about criminal records; to provide for the Private Security Industry Act 2001 to extend to Scotland; and for connected purposes

2003

The Money Laundering Regulations 2003 - Entered into force on 1st March 2004, replacing the Money Laundering Regulations 1993 and 2001 with updated provisions which reflect Directive 2001/97/EC of the European Parliament and of the Council amending Council Directive 91/308/EEC on prevention of the use of the financial system for the purpose of money laundering

The Proceeds of Crime Act 2002 (Business in the Regulated Sector and Supervisory Authorities) Order 2003 - Entered into force on 1st March 2004. Amended the meaning of a business in the regulated sector in Part 1 of Schedule 9 to the Proceeds of Crime Act 2002, to take into account Directive 2001/97/EC of the European Parliament and of the Council amending Council Directive 91/308/EEC on prevention of the use of the financial system for the purpose of money laundering. The Order also: (i) Added two bodies to the list of supervisory authorities in Part 2 of that Schedule; and (ii) Completed the UK’s implementation of the 2nd EC Money Laundering Directive (‘2MLD’)

The Terrorism Act 2000 (Business in the Regulated Sector and Supervisory Authorities) Order 2003 - Entered into force on 1st March 2004. Amended the meaning of a business in the regulated sector in Part 1 of Schedule 3A to the Terrorism Act 2000. The Order also: (i) Added two bodies to the list of supervisory authorities in Part 2 of that Schedule; and (ii) Completed the UK’s implementation of the 2nd EC Money Laundering Directive (‘2MLD’)

2002

Proceeds of Crime Act 2002 (‘POCA’) - Established the Assets Recovery Agency to disrupt organised criminal enterprises by recovering criminal assets, and promoting financial investigation as a part of criminal investigation (The Agency subsequently ceased to exist from April 2008). POCA provisions also included confiscation and restraint to recover property obtained through unlawful conduct or intended to be used in unlawful conduct. Part 7 (Money Laundering) defines:

• Money laundering offences
• Consent
• Disclosures

2001

The Anti-terrorism, Crime and Security Act 2001 - Amended the Terrorism Act 2000; included provisions on terrorism and security, freezing assets, amended or extended criminal law and powers for preventing crime and enforcing that law

The Money Laundering Regulations 2001 - Entered into force on 12th November 2001, amending The Money Laundering Regulations 1993, to also cover money service businesses and money service operators)

2000

The Terrorism Act 2000 - Entered into force on 20 July 2000 (later amended by the Anti-terrorism, Crime and Security Act 2001 and the Terrorism Act 2006). The legislation includes:

• Sec. 18 introduced a money laundering offence linked to facilitating retention or control by or on behalf of another person of terrorist property
• The Home Secretary may proscribe an organisation or group if he believes it is concerned in terrorism, and it is proportionate to do

1993

The Money Laundering Regulations 1993 - Entered into force on 1 April 1994. Introduced to implement the European Union’s 1991 Money Laundering Directive, focused specifically on the financial sector