NOTE: The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLR 2017) came into force on 26 June 2017 and replace the MLR 2007 for transgressions taking place after this date. This practice note is accordingly no longer maintained. For more information on the MLR 2017 see Practice notes Money Laundering Regulations 2017: civil penalties, Money Laundering Regulations 2017: criminal offences and Law Society: Anti-money laundering practice note (June 2017).

This note provides an overview of the money laundering regime that applies to lawyers pursuant to the Money Laundering Regulations 2007 (2007 Regulations). The 2007 Regulations came into force on 15 December 2007 and replaced the Money Laundering Regulations 2003 (2003 Regulations). They bring the 2005 Directive on money laundering into effect in the UK.

The 2007 Regulations introduce new requirements and vary requirements that were in the 2003 Regulations. In particular, the 2007 Regulations require that:

Lawyers are also to have regard to the Law Society's anti-money laundering practice note published on 6 October 2011, and the Solicitors Regulation Authority's warning cards on money laundering (December 2014), property fraud (April 2009) and bogus law firms and identity theft (March 2012).

Property lawyers should also take account of the joint Land Registry and Law Society practice note on property and registration fraud (September 2010), and the Law Society's note on mortgage fraud (October 2011).