FCA has updated its website to provide information for firms on the amended MLRs following MLD5 implementation. It stresses the changes the new MLRs bring in relation to:
- high-risk factors – the MLRs now specify additional high risk factors that firms should take into account when assessing the need for EDD, and FCA gives some examples of where firms should be seeking more information;
- the reduced thresholds for the CDD exemptions relating to e-money products;
- new requirements on CDD on beneficial ownership and structure of corporates and the duty to report discrepancies to Companies House; and
- the duty on credit institutions and providers of safe custody services to respond to requests for information via the central automated mechanism that is to be set up.
FCA notes that when assessing its approach to firms that are not compliant on 10 January 2020 it will take into account what they have done to comply. It also signposts its resources for business carrying on registrable cryptoasset activities.
For more detail on the amended MLRs, see our article.