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UK’s government has commenced the consultation process for further amendments to the Money Laundering Regulations 2017.

Changes up for discussion stand to affect the art market, including potentially those selling digital art, cryptoasset businesses, and trust and company services providers. The amendment of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) is afoot.

Consultation has commenced on proposed areas for reform and is open until 14 October 2021. Amending Regulations are proposed to be laid in Spring 2022. According to the consultation document, published on 22 July 2021, the amending Regulations will be focused on specific topics. Major change to the substance of MLR 2017 is off the table but the launch of a consultation process suggests more than minor tweaks. Some proposals, such as the expansion of the Companies House reporting duty, will affect all of the regulated sector. Others stand to substantially increase the compliance requirements faced by some parts of it.

Post-Brexit the United Kingdom is committed to robust systems to combat money laundering and financial crime but is also better able to chart its own course. Announcing the consultation, the government noted that it is keen to ensure that the UK’s AML and counter terrorist financing regime effectively deters money laundering and terrorist financing activity, whilst being proportionate and managing burdens on businesses.

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