Money Laundering Regulations

TABLE OF CONTENTS

• 1. Where can I find a copy of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations?
• 2. Does the work I do fall within the scope of the Regulations?
• 3. Currently, I don't do work that falls under the Regulations, but the cab rank rule means that I might do in the future. What should I declare?
• 4. What is a trust or company service provider ("TCSP")?
• 5. What is a DBS basic check? Do I need to obtain one? Do I need to submit it to the Bar Standards Board? How long does it take to obtain one? 
• 6. What is a "relevant offence" for the purposes of the Regulations?

1. Where can I find a copy of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations?

You can find the Regulations here: http://www.legislation.gov.uk/uksi/2017/692/contents/made

These Regulations came into force on 26 June 2017.

2. Does the work I do fall within the scope of the Regulations?

Regulations 11 and 12 set out who is subject to the Regulations:

Regulation 11; https://www.legislation.gov.uk/uksi/2017/692/regulation/11

Regulation 12: http://www.legislation.gov.uk/uksi/2017/692/regulation/12/made
 

You should read the Regulations carefully to help you to decide whether the work you are doing falls within their scope.
 

HM Treasury has decided that there should be one set of guidance for the legal sector in England, Wales, Scotland and Northern Ireland. The BSB has worked with the other legal regulators and representatives from the professions to develop the joint guidance, which is available here: https://www.barstandardsboard.org.uk/for-barristers/compliance-with-your-obligations/anti-money-laundering-counter-terrorist-financing/aml-guidance.html 

The guidance is separated into two parts, and you should read the sector specific guidance in Part 2 in the first instance. It has been written specifically to reflect the type of work that barristers typically engage in and contains a number of useful FAQs and case studies to assist interpretation.

HM Treasury has confirmed that the following would not generally be viewed as participation in a financial transaction and therefore not within the scope of the Regulations:

• payment on account of costs to a legal professional or payment of a legal professional's bill;
• provision of legal advice;
• participation in litigation or a form of alternative dispute resolution.
  
  

Not all public access work falls within the scope of the Regulations. The Regulations apply depending upon the kind of work undertaken, not the means by which you are instructed. 

The provision of legal advice by a barrister instructed to advise or give an opinion in relation to specific aspects of a transaction and not otherwise carrying out or participating in the transaction, would not generally be viewed as participation in a financial transaction for the purposes of the Regulations. This guidance is consistent with the interpretation previously approved by HM Treasury

If you act as a trustee or a company director in a personal capacity, which is not related to your business as a self-employed barrister, you are not in scope of the Regulations. You would only be in scope if your company or organisation was doing relevant work.

If, after reading the Regulations and the guidance, you are still unsure about whether the work that you do falls within the scope of the Regulations, you can contact the Bar Council Ethical Enquiries Service: https://www.barcouncilethics.co.uk/ethical-enquiries-service/

3. Currently, I don't do work that falls under the Regulations, but the cab rank rule means that I might do in the future. What should I declare?

We only require you to confirm annually, at Authorisation to Practise ("AtP"), whether you are undertaking, have current instructions or in the last 12 months have undertaken work which falls within the scope of the Regulations.

Regulation 56 says that you must not act as a trust or company service provide ("TCSP": see Trust or Company Service Provider guidance) unless you are registered with HMRC: https://www.legislation.gov.uk/uksi/2017/692/regulation/56/made

If you commence work as a TCSP after AtP, you should contact [email protected] to ensure that you are included on the register.

4. What is a trust or company service provider ("TCSP")?

TCSPs are defined in the Regulations as follows: https://www.legislation.gov.uk/uksi/2017/692/regulation/12/made 

5. What is a DBS basic check? Do I need to obtain one? Do I need to submit it to the Bar Standards Board? How long does it take to obtain one? 

A DBS basic check is a criminal record check provided by the Disclosure and Barring Service ("DBS") which shows unspent convictions and conditional cautions.
 

The Regulations impose certain obligations on the Bar Standards Board ("the BSB"), including to ensure that only those who are fit and proper persons are conducting work that falls within the scope of the Regulations (regulation 26).
 

The DBS basic check is a one-off requirement. Barristers who have already obtained a Basic Disclosure Check (as it was formerly known) or a Disclosure and Barring Service (DBS) check since being Called to the Bar will not be required to obtain a new check.
 

Barristers who have not declared at Authorisation to Practise but who subsequently accept instructions for work within the scope of the Regulations must request a DBS basic check upon accepting instructions and only begin the work after the result of the check has been received.
 

You are not required to send the check to the BSB but should be prepared to do so if asked.
 

You can obtain a basic check yourself. The DBS provide this service for those who live in England and Wales. Most checks will be processed in 14 days. More details can be found here: https://www.gov.uk/request-copy-criminal-record
 

If you live in Scotland, you can request a basic disclosure from Disclosure Scotland. More details can be found here: https://www.mygov.scot/basic-disclosure/apply-forbasic-disclosure/

If you live elsewhere, please contact [email protected].
 

6. What is a "relevant offence" for the purposes of the Regulations?

See Schedule 3 of the Regulations: http://www.legislation.gov.uk/uksi/2017/692/contents/made 

You should only answer "yes" if you have any UNSPENT convictions on the list on the above link 

For further guidance on anti-money laundering regulations, please visit https://www.barstandardsboard.org.uk/regulatory-requirements/anti-money-laundering-and-counter-terrorist-financing/declaration-at-authorisation-to-practise-and-obtaining-a-criminal-records-check/