From 1 April 2023, big changes hit the Money Laundering and Terrorist Financing Regulations 2022. A fresh definition for ‘material discrepancy’ is now in play.
What Is a Material Discrepancy?
Businesses forced to follow anti-money laundering rules must check company info carefully. They compare what they find with data at Companies House.
If differences pop up, especially regarding:
- People with Significant Control (PSC) of a company
- PSCs in limited liability partnerships (LLPs)
- PSCs of eligible Scottish partnerships
- Registrable beneficial owners of overseas entities (from April 1, 2023)
That difference is a “material discrepancy”.
What’s New From April 2023?
The big update? You only report a material discrepancy if it’s linked to:
- Money laundering
- Terrorism financing
- Concealing customer business details
Plus, obliged entities must report these discrepancies not just at the start, but throughout their business relationship.
Overseas Entities Now in the Spotlight
The new rules also bring the Register of Overseas Entities into the fold. So, discrepancies about overseas beneficial owners have to be reported, too.
Not sure if you need to file a suspicious activity report (SAR)? Make sure to check the updated money laundering regulations now. Don’t risk getting caught out!
