UK private equity and venture capital firms are subject to rigorous regimes to counter money laundering and terrorist financing.
International standards for anti-money laundering and counter-financing of terrorism (AML/CFT) are set by the Financial Action Task Force (FATF), an inter-governmental body. The EU’s fifth anti-money laundering directive (AMLD V/5MLD) came into force on 10 January 2020 and builds on the fourth AMLD to help prevent the financial system from being used for funding criminal active and to strengthen transparency rules to prevent large-scale concealment. HM Treasury consulted on the transposition of AMLD V in June 2019. The BVCA response focused on the proposed amendments to the customer due diligence rules and a new requirement that would require firms to help police the accuracy and completeness of the UK’s beneficial ownership and control (PSC) register.
The BVCA is also a member of the Joint Money Laundering Steering Group (JMLSG), which sets out sector specific guidance for the financial services industry to promote good practice in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations. The JMLSG guidance is available here, with the section on private equity contained in Part II, Section 13. In January 2020, the JMLSG consulted on proposed changes to its guidance to take into consideration the Money Laundering and Terrorist Financing Regulation (2019).
The FCA return -REP-CRIM - covers reporting on financial crime. The BVCA engaged with the FCA during the development of the return and a number of our points were addressed in the final policy statement.
BVCA Submissions
- Response to the consultation on the transposition of the 5MLD – June 2019
- Response to the Law Commission Consultation Paper on AML: the SARS Regime – October 2018
- Response to FATF Consultation on Draft Risk-Based Approach Guidance for the Securities Sector – August 2018
- Response to consultation on the transposition of the 4MLD and the draft regulations 2017 - April 2017
- Response to HMT Consultation on Transposition of the Fourth Money Laundering Directive (4MLD) - November 2016
- Response to HMG Action Plan for AML/CFT – June 2016
- Response to FCA Quarterly Consultation on REP-CRIM (CP 15/42) – February 2016
- Response to the BIS review of the impact on business of the current AML and CFT regime – October 2015
- Response to FCA Consultation on proposed guidance on financial crime systems and controls – February 2015
