What has changed?
An “AML/ATF Regulated Financial Institution” which is not otherwise licensed, registered or authorised by the BMA under any of the regulatory acts is required to register[1] with the BMA as a Non-Licensed Person (NLP).
The Proceeds of Crime (Miscellaneous) (No.2) Act 2018 came into effect on 7 September 2018 (Act). This Act has expanded the definition of an “AML/ATF Regulated Financial Institution” to include businesses carrying out certain specified “financial activities”. The full list of financial activities can be found in schedule 3 to the Proceeds of Crime Act 1997and now includes lending, financial leasing and financial guarantees.
The Act includes certain exceptions to what constitutes “financial activities” including:
(i) providing any of the specified financial activities intra-group (i.e. by a holding company to a subsidiary company, a subsidiary company to its holding company or by a subsidiary of that holding company to another subsidiary of that holding company); and
(ii) if the financial activities constitute ancillary business to an insurer’s insurance business as permitted under section 19 of the Insurance Act 1978.
Requirement for Registration
An NLP must have registered with the BMA before 7 December 2018 or risk being subject to enforcement action[2]. The registration form can be found here.
What information has to be submitted with the NLP registration form?
(i) the name of the compliance officer (CO) and reporting officer appointed (RO) for the purposes of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008;
(ii) fit and proper details (which includes a copy of their resume) for the CO, RO and any person who effectively directs or controls the business, including a director, controller or senior executive; and
(iii) a copy of the AML/ATF policies and procedures of the business.
Appleby has an experienced, multi-disciplinary regulatory team which includes expert compliance professionals, as well as a team of lawyers across our Corporate, Private Client & Trusts and Dispute Resolution practice groups. With expert advisors across a range of disciplines we can help you navigate regulated environments throughout the lifecycle of your business. Please contact a member of the team below if you have any questions.
[1] Section 9 of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008
