ML 1
Application
and Purpose
ML 1.1
Application
- 01/12/2004
ML 1.1.1
See Notes
(1)
This
sourcebook applies to every relevant
firm (see ML 1.1.2
R)
with respect to its relevant
regulated activities (see ML
1.1.4 R),
but there are special provisions in ML 8.1for sole
traders with no employees and authorised professional firms.
(2) Some provisions also relate to the money laundering reporting officer of
a relevant firm in
his capacity as an approved
person (see ML 7.1).
- 01/04/2005
Who?
ML 1.1.2
See Notes
(1) In this sourcebook, "relevant firm" means every firm, except:
(b) a UCITS
qualifier.
(2) An incoming
firm is a relevant
firm, but only to the extent that it is conducting activities
from an establishment in the United
Kingdom.
- 01/12/2001
ML 1.1.3
See Notes
The scope of this sourcebook is very
wide. It includes all firms except:
(1) those within
the limited exception for firms concerned
only with certain insurance activities and UCITS qualifiers (see ML 1.1.2
R); in this respect, the chapter follows article 1 of the Money Laundering Directive (No.91/308/EEC
as amended by No 2001/97/EEC);
(2) those within
the exception for firms carrying
on any
insurance mediation activity in
relation to a general insurance
contract or pure
protection contract (see ML
1.1.4 R (1A)) or any
mortgage mediation activity (see ML
1.1.4 R (5)); in this respect,
the chapter follows articles 2(3)(h) and 2(3)(i) of
the Money Laundering Regulations 2003 (SI 2003/3075).
The scope extends
to incoming firms (such
as branches of institutions established elsewhere in the EEA), except those providing only cross border services in
the United Kingdom.
This is because the Directive is designed to apply on a "Host State" basis. ML does not apply with respect to the unregulated activities of
a firm, for
example money service business.- 01/04/2005
What?
ML 1.1.4
See Notes
In this sourcebook, "relevant regulated activities" means any regulated activity apart
from:
(1A)
insurance mediation
activity in relation to a general
insurance contract or pure
protection contract;
(2)
long-term
insurance business which is outside the First Life Directive (and is not otherwise
a relevant regulated activity);
(3) business relating to contracts which
are within the Regulated
Activities Order only because they fall within paragraph (e)
of the definition of " contract
of insurance " in article 3 of that Order (see the Glossary );
(4)
(a) arranging, by the Society of Lloyd's, of deals in general insurance contracts written
at Lloyd's; and
(b) managing the underwriting capacity of
a Lloyd's syndicate as a managing agent at Lloyd's; and
- 01/06/2005
Where?
ML 1.1.5
See Notes
This sourcebook applies only in relation
to activities carried on from an establishment maintained by the firm (or its appointed representative)
in the United Kingdom.
- 01/12/2001
ML 1.2
Purpose
- 01/12/2004
ML 1.2.1
See Notes
The purpose of this sourcebook is to
require relevant firms to
have effective anti-money
laundering systems and controls, in order to reduce the opportunities
for money laundering in
relation to relevant firms.
It is also to require relevant
firms to ensure that approved
persons exercise appropriate responsibilities in relation to
these anti-money laundering systems
and controls.
- 01/12/2001
ML 1.2.2
See Notes
Section 2 of the Act (The Authority's general duties) sets
out the regulatory objectives of
promoting market confidence and public awareness, protecting consumers and reducing financial crime. The reduction
of financial crime objective
is the most important to this sourcebook. One aspect of the reduction of financial crime objective
is the risk of the businesses of relevant
firms being used in connection with offences which involve handling
the proceeds of crime. It follows that an effective and proportionate regulatory
regime is important in reducing the extent to which it is possible for the
businesses carried on by relevant
firms to be used for money
laundering. These rules and
compliance with them will also help the FSA to
meet the objective of maintaining market confidence, by reducing the risks
posed to the financial community by money
laundering. As to the public awareness objective, this sourcebook
is designed to assist relevant
firms and, through them, the public at large, to be better informed
about the safeguards for the financial
system provided by effective anti-money laundering systems and controls. Consumers are better protected
if relevant firms are
able to protect themselves against criminal activity and to record the steps
they have taken for that purpose.
- 01/12/2001
ML 1.2.3
See Notes
This sourcebook provides support, in
relation to money laundering,
for certain other parts of the Handbook,
mainly:
(2) the Statements of Principles and Code of Practice for Approved Persons (APER), in particular Statements of Principle 2
and 7;
(4) the Training and Competence sourcebook
(TC).
- 01/12/2001
ML 1.2.4
See Notes
This sourcebook relates to regulatory
requirements, as opposed to requirements imposed by the criminal law. It is,
therefore, not relevant guidance for the purposes of regulation 3(3) of the Money Laundering Regulations or
section 330(8) of the Proceeds of
Crime Act 2002.
- 01/03/2004
ML 1.2.5
See Notes
In assessing a relevant firm's compliance with the requirements
of this sourcebook, the FSA will
have regard to the relevant provisions of the Joint Money
Laundering Steering Group's Guidance Notes for the Financial Sector.
- 01/03/2004