United Kingdom

3. Other relevant matters

Anti-money laundering rules

The Proceeds of Crime Act 2002 (POCA) came into force on 24 February 2003. The Third European Money Laundering Directive (Third Directive), adopted on 26 October 2005 and entered into force on 15 December 2005, was implemented by the UK during 2007. This Directive, inter alia, requires increased due diligence for ‘beneficial owners’ and ‘politically exposed persons’. HM Treasury has issued the Money Laundering Regulations, which contain a further definition of ‘beneficial owners’ for the UK concept of trusts.

The Regulations impose responsibilities on accounting services providers, insolvency practitioners, tax advisors and providers of services in relation to the formation of companies and the formation, operation and management of trusts. Thus, the activities of most trust and estate practitioners are likely to fall within the Regulations. The Third Directive includes trust and company service providers to the extent that they are not already covered.

The Terrorism Act 2000 relates to proceeds of terrorism and terrorist financing.

When dealing with matters that touch and concern several jurisdictions, one must comply with anti-money laundering laws and regulations in all those jurisdictions.

© 2012 Society of Trust & Estate Practitioners