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Amendment of section 40 of Act of 2010
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20. Section 40 of the Act of 2010 is amended—
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(a) in subsection (1)—
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(i) in paragraph (b), by the substitution of “the Fourth Money Laundering Directive, in accordance with Section 2 of Chapter VI of that Directive” for “the Third Money Laundering Directive in accordance with Section 2 of Chapter V of that Directive,”,
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(ii) by the deletion of “or” after paragraph (b),
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(iii) in paragraph (c)—
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(I) by the substitution of “a place (other than a Member State) which is not a high-risk third country” for “a place designated under section 31”,
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(II) by the substitution of “the Fourth Money Laundering Directive” for “the Third Money Laundering Directive”,
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(III) in subparagraph (iii), by the substitution of “the place, or” for “the place.”,
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(iv) by the insertion of the following paragraph after paragraph (c):
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“(d) a person who carries on business in a high-risk third country, is a branch or majority-owned subsidiary of an obliged entity established in the Union, and fully complies with group-wide policies and procedures in accordance with Article 45 of the Fourth Money Laundering Directive and is—
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(i) a credit institution authorised to operate as a credit institution under the laws of the place,
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(ii) a financial institution (other than an undertaking that is a financial institution solely because the undertaking provides either foreign exchange services or payment services, or both) authorised to operate as a financial institution under the laws of the place, or
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(iii) an external accountant, auditor, tax adviser, legal professional or trust or company service provider subject to mandatory professional registration or mandatory professional supervision under the laws of the place.”,
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(b) by the insertion of the following subsection after subsection (1):
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“(1A) Without prejudice to the generality of paragraphs (b) and (c) of subsection (1), for the purposes of those paragraphs, a person is supervised or monitored for compliance with the requirements specified in the Fourth Money Laundering Directive, in accordance with Section 2 of Chapter VI, or requirements equivalent to those requirements, where—
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(a) the person and the designated person seeking to rely upon this section are part of the same group,
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(b) the group applies customer due diligence and record keeping measures and policies and procedures to prevent and detect the commission of money laundering and terrorist financing in accordance with the Fourth Money Laundering Directive or requirements equivalent to those specified in the Fourth Money Laundering Directive, and
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(c) the effective implementation of the requirements referred to in paragraph (b) is supervised at group level by a competent authority of the state where the parent company is incorporated.”,
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and
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(c) in subsection (4)(b), by the substitution of “the designated person is satisfied that the circumstances specified in paragraphs (a) to (c) of subsection (1A) exist, or” for “the designated person is satisfied,”.
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