ABSTRACT
This chapter considers how the requirements of the Third Directive have been introduced and enforced by the 2007 Regulations. A number of other amendments to what constitutes the ‘regulated sector’ have been made over the years to ensure it full meets changes in the law in particularly the Third Directive and Money Laundering Regulations 2007 and what is ‘relevant person’. Under the regulation 17 a relevant person may rely on another person, who themselves must be subject to the Money Laundering regulations or equivalent legislation, to apply Customer Due Diligence measures. However, this reliance can only take place if the ‘other person’ consents to being so relied upon and notwithstanding this reliance the relevant person remains liable for any failure to apply such measures. The Regulation 20 sets out the need for the establishment of an internal reporting system. Under this Regulation an organisation, other than a sole practitioner, must appoint a person nominated to receive internal reports.
