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The Money Laundering Sourcebook

The Financial Services Authority published its policy statement, including the final text of The Money Laundering Sourcebook on 9 January.There were more than 130 written responses to the preceding consultation and it is evident from the regulator’s comments that CP46 was the subject of lively debate. It is also apparent that the FSA listened carefully to respondents’ views and has made an effort to answer, if not always satisfy, industry concerns. The FSA expects to receive its formal powers to make these anti-laundering rules under secondary legislation “in a matter of months from now, probably in March.”With the text now set the die is cast and implementation will occur at N2, currently expected to be some time in the autumn. The FSA’s declared aim in writing the Rules was to achieve a “parallel but separate” approach to the Money Laundering Regulations 1993. It recognised in CP46 that the introduction of a new set of rules risked undermining the standing of the Guidance Notes produced by the Joint Money Laundering Steering Group (JMLSG), stating explicitly that this was not the intention. However, many respondents remained concerned that compliance uncertainty could arise where conformity with the Guidance Notes might be insufficient to prevent a regulatory breach in the same area. In the final text, the FSA has sought to alleviate these fears principally by excising a substantial part of the detail on customer identification which also features in the Guidance Notes.