Non-compliance with the Money Laundering Regulations 2007

It is a criminal offence for a business not to comply with the 2007 Regulations, if it is within their scope. An offence may also be committed by any partner, director or officer of the business, who has consented to or connived at the non-compliance or where the non-compliance is attributable to his neglect.

The relevant offences are referred to below:

• Regulation 7 – failure to apply customer due diligence measures
• Regulation 8 – failure to apply ongoing monitoring of business relationships and customer due diligence
• Regulation 9 – failure to comply with the requirements on timing of verification of identity of and any beneficial owner
• Regulation 11 – continuing with transaction/business relationship where unable to apply customer due diligence measures
• Regulation 14 – failure to apply enhanced customer due diligence and ongoing monitoring where required
• Regulation 18 – failing to follow a direction made by HM Treasury under this regulation (directions where FATF applies counter-measures)
• Regulation 19 – failure to keep the required records
• Regulation 20 – failure to establish, maintain, monitor and manage the required policies and procedures
• Regulation 21 – failure to take appropriate measures to provide the required training
• Regulations 26, 27 – failures regarding certain registration procedures where HM Revenue and Customs (HMRC) are the supervisory body (not applicable to those supervised by a body listed in Schedule 3 to the 2007 Regulations)
• Regulation 33 – failure to comply with registration requirements specified by HMRC (not applicable to those supervised by a body listed in Schedule 3)