Corporates required to update the KYC information they provide to banks and advisers
HM Treasury has published a further consultation on the transposition of the EU Fourth Money Laundering Directive, together with draft regulations. This includes an obligation for UK corporates to respond promptly to requests for information from regulated firms such as banks and external advisers who are required to carry out customer due diligence under the Anti-Money Laundering regime, and to update them if the information changes.
The draft regulations require every UK body corporate to respond to requests for certain information from "relevant persons" within two working days. Relevant persons include banks, auditors, insolvency practitioners, external accountants and tax advisers, and lawyers.
During the course of the business relationship, if there is any change to the information previously provided, the UK body corporate must notify the relevant persons of such change within two working days.
The information in question includes basic corporate information as well as details of individuals who are legal or beneficial owners. In most cases an entity's beneficial owners will be the same as those identified on its register of people with significant control.
If the regulations are implemented, companies should establish processes to record any bank, adviser or other firm to which it has provided customer due diligence information and to consider if they need to update those organisations any time the company updates its registers or makes a filing at Companies House.
The regulations also include obligations on trustees to maintain information on the trust's beneficial owners.
The deadline for responding to the consultation on the draft regulations is 12 April 2017.
BEIS will be making a separate statement in relation to changes to the PSC regime in the Companies Act 2006 to implement the Directive.
Click here for the draft Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.