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The Proceeds of Crime Act 2002 and Money Laundering Regulations 2003 (Amendment) Order 2005

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2005, ISBN 0110736567 · Made 24 October 2005

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Order in Council laid before Parliament under paragraph 2(2) of Schedule 2 to the European Communities Act 1972, for approval by resolution of each House of Parliament.

proceeds of crime

financial services

Made 2005

Coming into force 2005

At the Court at Buckingham Palace, the   day of      2005   

Present,

The Queen’s Most Excellent Majesty in Council

Her Majesty, in exercise of the powers conferred on Her by section 2(2) of the European Communities Act 1972f1, is pleased, by and with the advice of Her Privy Council to make the following Order:

Annotations to the whole text

Footnotes

f1

1972 c.68.

Contents

  1. Signature
  2. Explanatory note

Signature

Clerk of the Privy Council

Explanatory note

(This note is not part of the Order)

Section 330 of the Proceeds of Crime Act 2002 requires a person to make a disclosure in accordance with section 330(4) (as substituted by section 104(3) of the Serious Organised Crime and Police Act 2005) where he knows or suspects, or has reasonable grounds for knowing or suspecting, that another person is engaged in money laundering and the information or other matter came to him in the course of a business in the regulated sector. Schedule 9 to that Act (as amended by the Proceeds of Crime Act 2002 (Business in the Regulated Sector and Supervisory Authorities) Order 2003 (S.I. 2003/3074)) has effect for determining what is a business in the regulated sector. Failure to make such a disclosure is an offence under section 330(1).

Section 330(6)(b) (as substituted by section 104(3) of the 2005 Act) provides a defence to this offence where the person is a professional legal adviser and the information or other matter came to him in the circumstances set out in section 330(10). In order to give full effect to Directive 2001/97/EC, article 2(2) of this Order amends section 330(6)(b), (9A)(a) and (10) to extend the persons to whom the defence applies to a “relevant professional adviser”, as defined by section 330(14), which is inserted by article 2(5). The amendments made by article 2(3) and (4) provide a defence for a person who is employed by (or in partnership with) the professional legal adviser or other relevant professional adviser to provide assistance or support.

The Money Laundering Regulations 2003 also give effect to that Directive. Article 3 of this Order makes the same amendments to regulation 7 of those Regulations as the amendments made by article 2 to section 330. Regulation 7 provides for the internal reporting procedures with which a person must comply in the course of relevant business (regulation 3(1) of those Regulations). “Relevant business” is defined by regulation 2(2) of those Regulations.