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Notices of Amendments: 27 February 2018                  

15

 

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

 
 

(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).”

 

Member’s explanatory statement

 

This new clause would make it an offence if a relevant body failed to put in place adequate

 

procedures to prevent a person associated with it from carrying out a money laundering

 

facilitation offence. A money laundering facilitation offence would include concealing, disguising,

 

converting, transferring or removing criminal property under section 327 of the Proceeds of Crime

 

Act 2002.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC10

 

Parliamentary Star - white    

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.

 

(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.””

 

Member’s explanatory statement

 

This new clause would amend the Companies Act 2006 to ensure that the Registrar of Companies


 
 

Notices of Amendments: 27 February 2018                  

16

 

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

 
 

does not register a company under that Act unless the required anti-money laundering checks have

 

taken place.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC11

 

Parliamentary Star - white    

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”.”

 

Member’s explanatory statement

 

This new clause would ensure that when a company is formed in the UK, the relevant formation

 

services must identify the beneficial owners of the company. It will also treat Companies House as

 

a “company formation agent”, ensuring that the data on the public register of beneficial

 

ownership for companies is accurate.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC12

 

Parliamentary Star - white    

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).”


 
 

Notices of Amendments: 27 February 2018                  

17

 

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

 
 

(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).”

 

Member’s explanatory statement

 

This new clause would amend the duties of Companies House to ensure that any person wishing

 

to register a company must be checked for due diligence by Companies House, in line with the

 

measures included in the Money Laundering Regulations 2017. It also ensures that the Secretary

 

of State can charge fees for due diligence checks to cover costs incurred by Companies House.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC13

 

Parliamentary Star - white    

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.””

 

Member’s explanatory statement

 

This new clause would ensure that all companies wishing to be created in the UK must provide

 

evidence of a UK bank account to ensure it has gone through proper money laundering checks by

 

a UK supervising body. If a company is unable to provide proof then they are liable to a fee which

 

will cover the cost of such checks.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC14

 

Parliamentary Star - white    

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.

 

(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);


 
 

Notices of Amendments: 27 February 2018                  

18

 

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

 
 

“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).”

 

Member’s explanatory statement

 

This new clause would ensure that Trust or company service providers that do not conduct

 

business in the UK may not incorporate UK companies without oversight from a UK supervisor.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC15

 

Parliamentary Star - white    

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).”

 

Member’s explanatory statement

 

This new clause would require the Minister to ask the courts to investigate whether directors of a

 

company are fit and proper, if it was found that proper procedures against money laundering were

 

not in place.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC16

 

Parliamentary Star - white    

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.”

 



 
 

Notices of Amendments: 27 February 2018                  

19

 

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

 
 

Helen Goodman

 

Anneliese Dodds

 

NC17

 

Parliamentary Star - white    

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.”

 

Member’s explanatory statement

 

This new clause calls for a public consultation on corporate liability for money laundering within

 

six months.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC18

 

Parliamentary Star - white    

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”.

 

Member’s explanatory statement

 

This new clause would require the Government to publish the register of beneficial ownership of

 

trusts and similar legal arrangements on the day this Act is passed.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC19

 

Parliamentary Star - white    

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;


 
 

Notices of Amendments: 27 February 2018                  

20

 

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

 
 

(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;

 

(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.”

 

Member’s explanatory statement

 

This new clause would allow the Minister to amend the Money Laundering Regulations 2017 via

 

statutory instruments, but only if it is permitted under the listed situations. It is designed to prevent

 

dilution or repeal of the regulations.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC20

 

Parliamentary Star - white    

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.”

 

Member’s explanatory statement

 

This new clause would prevent any amendment or repeal to the 2017 Money Laundering

 

Regulations after Brexit.

 


 
 

Notices of Amendments: 27 February 2018                  

21

 

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

 
 

Order of the House [20 February 2018]

 

That the following provisions shall apply to the Sanctions and Anti-Money Laundering

 

Bill [Lords]:

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.

 

Proceedings in Public Bill Committee

 

2.    

Proceedings in the Public Bill Committee shall (so far as not previously

 

concluded) be brought to a conclusion on Tuesday 6 March.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Proceedings on Consideration and up to and including Third Reading

 

4.    

Proceedings on Consideration and any proceedings in legislative grand

 

committee shall (so far as not previously concluded) be brought to a

 

conclusion one hour before the moment of interruption on the day on which

 

proceedings on Consideration are commenced.

 

5.    

Proceedings on Third Reading shall (so far as not previously concluded) be

 

brought to a conclusion at the moment of interruption on that day.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on Consideration and up to and including Third Reading.

 

Other proceedings

 

7.    

Any other proceedings on the Bill may be programmed.

 

 

Order of the Committee [27 February 2018]

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 27

 

February) meet—

 

(a)  

at 2.00 pm on Tuesday 27 February;

 

(b)  

at 11.30 am and 2.00 pm on Thursday 1 March;

 

(c)  

at 9.25 am and 2.00 pm on Tuesday 6 March;

 

(2)  

the proceedings shall be taken in the following order: Clauses 2 to 5;

 

Schedule 1; Clauses 6 to 18; Clause 1; Clauses 19 to 43; Schedule 2; Clauses

 

44 to 50; Schedule 3; Clauses 51 to 56; new Clauses; new Schedules;

 

remaining proceedings on the Bill.

 

(3)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 5.00 pm on Tuesday 6 March.

 

 

NOTICES WITHDRAWN

 

The following Notices were withdrawn on 23 February 2018:

 

23

 


 
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Revised 27 February 2018