OFT supervisory role under Money Laundering Regulations 2007

Under the UK Money Laundering Regulations 2007 (the Regulations), the Office for Fair Trading (OFT) is one of the bodies with a supervisory role for certain firms within the Regulated sector.

The OFT has responsibility in this sense for estate agencies and consumer credit financial agencies (CCFIs). As of July 2009, the OFT has set up a registration scheme for both types of company; those that fail to register with the body by 31 January 2010 will be unable to continue their practice in that field legally. The OFT is empowered to issue civil penalties and bring prosecutions where business is carried on illegally without registration after that time.

Registration may also be rescinded if the OFT finds that a supervised business has provided false, misleading or insufficient information, or has failed to pay the charges imposed by the body.

CCFIs and estate agents have both been monitored by the OFT since the introduction of the money laundering law in December 2007, and the development of the registration programme is intended to contribute to better practice in those firms. This means, like any other Regulated firms, such businesses are obligated to appoint a money laundering reporting officer (MLRO), to monitor day-to-day activity for suspicious transactions, and to institute a programme of anti-money laundering training to ensure all staff and principals are able to deal with suspicious activity appropriately.

The OFT is charged with making certain that the firms under its supervision comply with this obligation. Its published enforcement protocols state that, where possible, it will give businesses the opportunity to bring their practice in line with the Regulations before stringent measures are taken, but it is clear that initial compliance with anti-money laundering legislation is preferable and must be a priority for these firms.

The body's guidance to the firms it monitors also underlines that its enforcement principles are subject to change, and MLROs for estate agents or CCFIs must therefore be alert to any resultant change in their responsibilities.

Compliance with Money Laundering Regulations 2007
Achieving compliance with the various aspects of UK money laundering law can be a major task for an MLRO, and is only further complicated by the potential for future amendments to the legislation and the processes through which a firm is supervised. This requires knowledge of the practical working of these Regulations and support in introducing appropriate internal controls.

The services provided by ML Solutions 4U can help firms of any size throughout the Regulated sector achieve compliance through personalised anti-money laundering training packages. With a choice between seminars, in-house workshops and digital training technology, our expertise in this field can be shaped to meet the specific needs of any MLRO. Also available from ML Solutions4U is access to a dedicated anti-money laundering compliance Helpline, assistance in preparing practical compliance guidance and in establishing the internal systems and controls required under the Regulations.

For more information about how our services can support your firm in meeting its obligations under the Money Laundering Regulations 2007, please complete our enquiry form, or telephone an advisor on 0845 872 7361.

Money Laundering Information » OFT Role Under Money Laundering Regulations 2007