The Economic Crime and Corporate Transparency Act 2023 has introduced notable changes for entities operating within the regulated sector, specifically related to the domain of anti-money laundering practices. As part of the new legislation, two “pay-away” exceptions have now been implemented, easing the necessity for a firm within the regulated sector to file a Defence against Money Laundering (DAML).
Prior to this act, entities within the regulated sector were faced with challenging obligations when concluding a customer relationship where an account was suspected of containing criminal property. Under those circumstances, the firm was compelled to seek a DAML from the UK National Crime Agency (NCA) before initiating any transactions with the property in question. This requirement often led to procedural difficulties and imposed a substantial administrative burden on regulated firms.
With the new amendments brought forth by the Economic Crime and Corporate Transparency Act 2023, the regulated sector will observe a shift in these anti-money laundering prerequisites. The two new exceptions introduced aim to alleviate the administrative strain encountered during customer account dissolution.
More comprehensive information on the act’s stipulations and their implications for the regulated sector can be found through further exploration of Allen & Overy LLP’s analysis. It is essential for firms operating within the regulated sector to diligently understand these changes and adhere to the modified legal landscape.