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Tighter rules against money laundering come into effect

Posted: 12th February 2020   In: Corporate Commercial

Companies that come under anti-money laundering legislation must now report certain irregularities to Companies House.

The Fifth Anti-Money Laundering Directive (5MLD) came into effect on 10 January. It obliges businesses to tell Companies House if there’s a discrepancy between the information they hold about a beneficial owner and information on the Companies House People with Significant Control (PSC) register.

The requirement extends to any obliged entity required to carry out customer due diligence under anti-money laundering regulations. These entities include banks, financial institutions, estate agents and credit reference agencies, among others.

Discrepancies must be reported if there’s a material difference between the two sets of information.

Companies House will investigate these discrepancies and, if necessary, contact the company.

The Head of PSC Compliance at Companies House Lee Robins said: “Organisations subject to anti-money laundering regulations will already be familiar with the steps they need to take in order to achieve compliance.

“However, these entities must now report any fundamental differences between beneficial ownership information held by a client and the details on the Companies House PSC register.

“This will bolster the measures we’ve already taken to improve the integrity of our PSC data.”

Please contact Mandeep Singh if you would like more information about the issues raised in this article or any aspect of company law and compliance.

 

Posted by: Mandeep Singh
Corporate Commercial
Luton Office