iOn March 25, the UK Government published the Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 (SI 2021/392) on its website together with an explanatory memorandum (the Regulations).
The Regulations amend regulation 33(3)(a) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLRs 2017).
Schedule 3ZA, which sets out a list of high-risk third countries, will be inserted into the MLRs 2017. The Regulations will change the definition of a “high-risk third country” from a country that was defined by a European Commission delegated act to a country specified in the new Schedule 3ZA, and they make a subsequent amendment to regulation 39(4).
The Regulations also repeal the retained EU law version of Commission Delegated Regulation (EU) 2016/1675, which provides a list of high-risk third countries recognized by the European Commission. This list will be superseded by the new list in Schedule 3ZA.
The Regulations go into effect on March 26.
