HMRC has updated its anti-money laundering (AML) guidance for supervised businesses, and it's incredibly important that every sourcing agent and deal packager makes sure their documents reflect the changes.
This applies to you no matter where your documents came from. Whether they're ours, another provider's, or your own, please make sure they're updated. Review the full guidance below, or ask your document provider or legal team to update them for you.
Sourcers are now in scope
Sourcing agents and deal packagers are now covered in HMRC's guidance and must register with HMRC for AML supervision.
What you need to do
There are critical changes here, and it's on you to make sure your documents reflect them. You have three options:
Research the changes yourself: review the HMRC guidance and sources below in full and update your documents accordingly.
Pass it to your legal team: have them review the guidance and update your documents for you.
Come through us: we've already done the work. Our AML documents are updated to reflect the new guidance, so you can get them sorted without starting from scratch.
We work closely with HMRC's AML team and stay on top of their guidance as it develops, which is how we're able to update our documents to reflect changes like this quickly, and why we've long expected sourcing to be brought fully into scope.
The HMRC guidance and sources to review
On HMRC's main guidance site, you must read and understand all of the following:
Part 1 — Guidance for All Sectors: all sections
Part 2 — Sector-Specific Guidance: section AMLG2200
Part 3 — Sector Risk Assessments: AMLG3200
HMRC AML guidance for supervised businesses →
HMRC expects you to have access to and use the following in your day-to-day due diligence (an electronic screening system removes the need for manual searching):
HMRC also expects you to have read and understood the following, and to reflect their recommendations in your legally required AML documents:
HM Treasury — Risk Assessment of Proliferation Financing
JMLSG — Proliferation Financing guidance
OFSI — how to report a suspected breach of financial sanctions
Get the updated documents from NAPSA
If you'd rather have it done properly:
The Complete Sourcing Programme: everything you need, including the full updated document suite, training and a year of membership for essential sourcing and business support. → Complete Programme
The Document Suite: the full updated set of solicitor-built AML and sourcing documents. → Document suite
Individual documents: pick up just the updated AML documents you need (listed below). → Document shop
Updated AML documents available individually:
AML Controls and Procedures — Investor: individual
AML Controls and Procedures — Investor: company
AML Controls and Procedures — Investor: trust or foundation
AML Controls and Procedures — Investor: 3rd party agent
AML Controls and Procedures — Seller: individual
AML Controls and Procedures — Seller: company
AML Controls and Procedures — Seller: trust or foundation
AML Controls and Procedures — Seller: 3rd party agent
AML overall business risk assessment
AML Policy
AML Seller - Risk Assessment/Analysis Form
AML Investor - Risk Assessment/Analysis Form
Additional documents affected by the update
Data Privacy Policy
Terms of Business Agreement
The bottom line
AML legislation and guidance are regularly reviewed and updated. Keeping your companies documents up to date with any changes is key to protecting your business should HMRC ever carry out an inspection of it. Read all of the guidance listed above, understand what changes are needed and make those changes in all relevant documents that you have and follow them. If you're unsure about anything and would like the support of NAPSA, then please just get in touch.
This post points to official guidance so you can review it directly. It isn't legal advice — if you're unsure how the changes apply to your business, speak to your legal team.
