From 15 December 2007 many businesses, from casinos to estate agents, will have their anti-money laundering controls monitored. HM government has given the FSA responsibility responsibility for supervising ‘Annex I financial institutions’ (so named because they are listed in Annex I of the Banking Consolidation Directive).
The FSA will therefore be supervising otherwise unregulated businesses carrying out the following activities for anti-money laundering and counterterrorist financing purposes from 15 December 2007:
• lending;
• financial leasing;
• safe custody services;
• issuing and administering means of payment (e.g. credit cards, travellers’ cheques and bankers’ drafts);
• offering guarantees and commitments;
• participation in securities issues and providing
services related to such issues (this will include registrars); and
• advice to undertakings on capital structure, industrial strategy and related questions and advice as well as services relating to mergers and the purchase of undertakings.
These businesses will need to register with the FSA. Firms that are already authorised and regulated by the FSA will not need to register again as the FSA already has their details. Appointed Representatives will however be required to register.
We can expect the FSA to adopt a risk based and proportionate approach to the supervision of the EU Money Laundering Regulations.
Further details can be expected to be published by the FSA in the summer.
