Part II Public Obligations and Regulatory Responsibilities, B Sanctions and Regulatory Responsibilities, 10 Regulatory Responsibilities

Subject(s):

Money laundering — Conduct of business regulation — International financial system — Monetary system — Financial Action Taskforce (FATF)

This chapter looks at the Money Laundering (ML) Regulations of 2007. These regulations implement both the Third Money Laundering Directive and the first implementing directive of the EC Commission. For the most part, the ML Regulations 2007 adopt the ‘copy-out’ or ‘direct incorporation’ method of transposing the Community measures into English law. This means that there is a verbatim transposition of the provisions of the directive into national law. This has an obvious advantage and difficulty. The advantage is that it ensures that all of the provisions of the directive are transposed into English law. The difficulty is that it can create uncertainty. That is to say, it removes from the domestic legislature the responsibility for interpreting Community concepts in an English law context and instead imposes that burden on individuals who have to decide how these measures are to be applied in practice. The chapter also looks at the Financial Action Task Force (FAFT) recommendations.