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Public Bill Committee Proceedings: 6 March 2018            

8

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC9

 

To move the following Clause—

 

         

“Failure to prevent money laundering

 

(1)    

A relevant body (B) is guilty of an offence if a person commits a money

 

laundering facilitation offence when acting in the capacity of a person associated

 

with B.

 

(2)    

For the purposes of this section “money laundering facilitation offence” means—

 

(a)    

concealing, disguising, converting, transferring or removing criminal

 

property under section 327 of the Proceeds of Crime Act 2002

 

(concealing etc);

 

(b)    

entering into an arrangement which the person knows, or suspects,

 

facilitates (by whatever means) the acquisition, retention, use, or control

 

of criminal property under section 328 of the Proceeds of Crime Act 2002

 

(arrangements); or

 

(c)    

the acquisition, use or possession of criminal property, under section 329

 

of the Proceeds of Crime Act 2002 (acquisition, use and possession).

 

(3)    

It is a defence for B to prove that, when the money laundering facilitation offence

 

was committed, B had in place adequate procedures designed to prevent persons

 

acting in the capacity of a person associated with B from committing such an

 

offence.

 

(4)    

A relevant body guilty of an offence under this section is liable—

 

(a)    

on conviction on indictment, to a fine;

 

(b)    

on summary conviction in England and Wales, to a fine; or

 

(c)    

on summary conviction in Scotland or Northern Ireland, to a fine not

 

exceeding the statutory maximum.

 

(5)    

It is immaterial for the purposes of this section whether—

 

(a)    

any relevant conduct of a relevant body, or

 

(b)    

any conduct which constitutes part of a relevant criminal offence,

 

    

takes place in the United Kingdom or elsewhere.

 

(6)    

In this section, “relevant body” and “acting in the capacity of a person associated

 

with B” have the same meaning as in section 44 of the Criminal Finances Act

 

2017 (meaning of relevant body and acting in the capacity of an associated

 

person).”

 


 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC10

 

To move the following Clause—

 

         

“Registration of companies: anti-money laundering checks

 

(1)    

The Registrar of Companies must not register a company unless he or she is

 

satisfied that appropriate anti-money laundering checks have taken place.


 
 

Public Bill Committee Proceedings: 6 March 2018            

9

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(2)    

The Companies Act 2006 is amended as follows—

 

(a)    

in section 9, after subsection (5), insert—

 

“(5ZA)    

The application must provide satisfactory evidence that anti-

 

money laundering checks have taken place.”

 

(b)    

after section 13 insert—

 

“13A  

Satisfactory evidence of anti-money laundering checks

 

(1)    

The Registrar is entitled to accept the anti-money laundering

 

registration number of the United Kingdom body that has

 

submitted the application as satisfactory evidence under section

 

9(5ZA), provided he or she believes that number to be valid.

 

(2)    

The Secretary of State may by regulations made by statutory

 

instrument specify any other evidence that the Registrar may

 

accept under section 9(5ZA).

 

(3)    

A statutory instrument containing regulations under this section

 

is subject to annulment in pursuance of a resolution of either

 

House of Parliament.””

 


 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC11

 

To move the following Clause—

 

         

“Due diligence

 

(1)    

For the purposes of preventing money laundering, when a company is formed,

 

any company formation agent providing formation services must ensure that the

 

identity and business risk profile of all beneficial owners of the company are

 

established in accordance with—

 

(a)    

the customer due diligence measures under the Money Laundering,

 

Terrorist Financing and Transfer of Funds (Information on the Payer)

 

Regulations 2017 (S.I. 2017/692),

 

(b)    

regulations made under section 41 of this Act, or

 

(c)    

the Directive (EU) 2015/849 of the European Parliament and of the

 

Council of 20 May 2015 on anti-money laundering measures.

 

(2)    

For the purposes of subsection (1), Companies House is to be treated as a

 

“company formation agent”.”

 



 
 

Public Bill Committee Proceedings: 6 March 2018            

10

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

Anneliese Dodds

 

Not called  NC12

 

To move the following Clause—

 

         

“Companies House: due diligence and resources

 

(1)    

For the purposes of preventing money laundering, the Companies Act 2006 is

 

amended as follows.

 

(2)    

In section 1061 (the registrar’s functions) after subsection (1) insert—

 

“(1A)    

Functions directed by the Secretary of State under subsection (1)(b) must

 

include due diligence on a person wishing to register a company.

 

(1B)    

In this section “due diligence” has the same meaning as “customer due

 

diligence measures” in regulation 3 of the Money Laundering, Terrorist

 

Financing and Transfer of Funds (Information on the Payer) Regulations

 

2017 (S.I. 692/2017).”

 

(3)    

In section 1063 (Fees payable to the registrar), in subsection (2)(a) after

 

“Secretary of State” insert “including the duty of due diligence under section

 

1061(1A).”

 


 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC13

 

To move the following Clause—

 

         

“UK bank accounts

 

(1)    

For the purposes of tackling money laundering, the Companies Act 2006 is

 

amended as follows.

 

(2)    

In section 853A (duty to deliver confirmation statements), after subsection (1)

 

insert—

 

“(1A)    

In subsection (1) “information” includes such information as is able to

 

demonstrate that the company has a UK bank account.

 

(1B)    

Any company that is unable to provide the information required in

 

subsection (1A) is liable to a fee which may be prescribed by

 

regulations.””

 


 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC14

 

To move the following Clause—

 

         

“Trust or company service providers

 

(1)    

For the purposes of preventing money laundering, a trust or company service

 

provider that does not carry on business in the UK may not incorporate UK

 

companies without oversight from an anti-money laundering supervisor.


 
 

Public Bill Committee Proceedings: 6 March 2018            

11

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(2)    

In this section—

 

“anti-money laundering supervisor” has the same meaning as “supervisory

 

authority” in Schedule 2;

 

“trust or company service provider” has the same meaning as in regulation

 

3 of the Money Laundering, Terrorist Financing and Transfer of Funds

 

(Information on the Payer) Regulations 2017 (S.I. 692/2017);

 

“carry on business in the UK” has the same meaning as in regulation 9 of

 

the Money Laundering, Terrorist Financing and Transfer of Funds

 

(Information on the Payer) Regulations 2017 (S.I. 692/2017).”

 


 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC15

 

To move the following Clause—

 

         

“Disqualification

 

In the event that adequate procedures under subsection (3) of section [Failure to

 

prevent money laundering] are found not to be in place, the Secretary of State

 

must refer to the court a disqualification order under section 8 of the Company

 

Directors Disqualification Act 1986 (disqualification of director on finding of

 

unfitness).”

 


 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC16

 

To move the following Clause—

 

         

“Money laundering: standards and designations

 

(1)    

An appropriate Minister may by regulations made by statutory instrument amend

 

the Money Laundering, Terrorist Financing and Transfer of Funds (Information

 

on the Payer) Regulations 2017 (S.I. 2017/692) in order to—

 

(a)    

implement standards published by the Financial Action Task Force from

 

time to time relating to combating money laundering, terrorist financing

 

and threats to the integrity of the international financial system; and

 

(b)    

identify or revoke a designation of a high risk country taking account of

 

best international practice including EU sanctions regimes.

 

(2)    

Regulations under this section may not create new types of criminal offences, or

 

reduce defences or evidence.

 

(3)    

A statutory instrument containing regulations under this section may not be made

 

unless a draft of the instrument has been laid before, and approved by a resolution

 

of, each House of Parliament.”

 



 
 

Public Bill Committee Proceedings: 6 March 2018            

12

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

Anneliese Dodds

 

Negatived on division  NC17

 

To move the following Clause—

 

         

“Consultation on reform of the law on corporate liability for money

 

laundering and terrorist financing etc

 

No later than six months from the date on which this Act is passed, the Secretary

 

of State must arrange for the undertaking of a public consultation on the merits of

 

reforming the law on corporate liability for money laundering, terrorist financing

 

offences and those offences which pose a threat to the integrity of the

 

international financial system.”

 


 

Helen Goodman

 

Anneliese Dodds

 

Not moved  NC18

 

To move the following Clause—

 

         

“Public register of beneficial ownership of trusts and similar legal

 

arrangements

 

The Money Laundering, Terrorist Financing and Transfer of Funds (Information

 

on the Payer) Regulations 2017 are amended by leaving out paragraph (12) of

 

regulation 45 (Register of beneficial ownership) and inserting—

 

“(12)    

The Commissioners must ensure that the register is published”.

 


 

Helen Goodman

 

Anneliese Dodds

 

Not moved  NC19

 

To move the following Clause—

 

         

“Money laundering: technical amendment

 

(1)    

Until two years after exit day, as defined by section 14 of the European Union

 

(Withdrawal) Act 2018, an appropriate Minister may by regulations made by

 

statutory instrument amend the Money Laundering, Terrorist Financing and

 

Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692)

 

in order to—

 

(a)    

replace references to EU directives and regulations with corresponding

 

references to UK legislation;

 

(b)    

transpose references to European Supervisory Authorities and any

 

review, report, guideline or Regulatory Technical Standards

 

requirements of the European Supervisory Authorities into

 

corresponding requirements of UK supervisory bodies with any

 

obligations to take account of international developments and to consult

 

also being carried over;


 
 

Public Bill Committee Proceedings: 6 March 2018            

13

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(c)    

transpose requirements for European Commission reports into report

 

requirements from the Treasury and Home Office, including any

 

obligation to take account of international developments;

 

(d)    

transpose references to delegated acts into provisions for regulations

 

made by the affirmative procedure;

 

(e)    

update references relating to EEA passport rights or replace them with

 

any corresponding or negotiated right;

 

(f)    

amend definitions of credit institutions and financial institutions or any

 

other definition lists to eliminate EU cross-references and establish

 

corresponding entity lists;

 

(g)    

convert any amount in euros to sterling;

 

(h)    

modify or delete provisions relating to the EEA to retain reference as

 

appropriate or combine with third country provisions;

 

(i)    

replace reference to the identifying of high risk third countries by the

 

Commission with corresponding UK procedure that takes account of

 

international provisions.

 

(2)    

A statutory instrument containing regulations under this section may not be made

 

unless a draft of the instrument has been laid before, and approved by a resolution

 

of, each House of Parliament.”

 


 

Helen Goodman

 

Anneliese Dodds

 

Not moved  NC20

 

To move the following Clause—

 

         

“Money laundering exemptions

 

The Money Laundering, Terrorist Financing and Transfer of Funds (Information

 

on the Payer) Regulations 2017 (S.I. 2017/692) are exempted from amendment

 

or revocation under the Legislative and Regulatory Reform Act 2006 and under

 

the European Union (Withdrawal) Act 2018.”

 


 

Helen Goodman

 

Not moved  NC21

 

To move the following Clause—

 

         

“Duration of Act

 

This Act expires at the end of the period of 5 years beginning with the day on

 

which this Act is passed.”

 



 
 

Public Bill Committee Proceedings: 6 March 2018            

14

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Alison Thewliss

 

Not moved  NC22

 

To move the following Clause—

 

         

“Scottish Limited Partnerships: partner requirement

 

(1)    

For the purposes of preventing money laundering, where a limited partnership

 

registered in Scotland has general partners at least one of those must be a British

 

citizen.

 

(2)    

Where a limited partnership registered in Scotland has limited partners at least

 

one of those must be a British citizen.

 

(3)    

In this section—

 

“limited partnership registered in Scotland” means a partnership registered

 

under the Limited Partnerships Act 1907;

 

“British citizen” has the meaning given in part 1 of the British Nationality

 

Act 1981;

 

“general partner” has the meaning given in section 4(2) of the Limited

 

Partnership Act 1907;

 

“limited partner” has the meaning given in section 4(2A) of the Limited

 

Partnership Act 1907.”

 

Bill, as amended, to be reported.

 


 
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Revised 06 March 2018