The combination of an effectively hung Parliament, and the concentration on the “Brexit” encounters [they are hardly negotiations], has had the effect of delaying many matters which are required to be dealt with by the new laws on Money Laundering. As a result, many aspects are in limbo:
- The Law Society’s substantive Guidance on the new Fourth Directive Regulations has yet to be approved by the Treasury, over two months after the new Regulations came into force [and those were brought in following a last minute, and technically unconstitutional, rush].
- The Government’s desire to clamp down on solicitors continues with a “dialogue of the deaf” over the proposed new Regulator of Regulators [“OPBAS”]. The Law Society is particularly dismissive of this imposition.
- The FCA has issued Guidance over how they see that PEPs [“politically exposed persons”] should be categorised and treated. They see the scope as generally limited to major national figures, and not, for example, local government personnel. Similarly, the Government sees international bodies as including the UN and NATO, but not international sporting bodies. Bearing in mind what has happened at the IOC and FIFA, it would be absurd not to treat them as very high risk clients anyways. The same probably goes for Local Authorities, not least in the light of the “Grenfell” disaster.
- Political posturing in the European Parliament is still aiming for a public register of all trusts, through further changes to the 4th Money Laundering Directive [misleading referred to in the press as the 5th MLD].
On the corporate front, earlier suggestions of compulsory workers on boards and controls over perceived “fat cats” [the disparity of executive pay], have been watered down in the latest Government response. Having employee representatives on the Board is merely proposed to be one option, of three, which are not compulsory. Executive pay problems are to be addressed by disclosure.