Tranche 2 AML Reforms: What UK Firms Should Understand
In brief: Tranche 2 AML reforms usually refer to extending or strengthening AML obligations for designated non-financial businesses and professions in jurisdictions reforming their regimes.
Key points
- Tranche 2 is mostly used in reform discussions outside the UK.
- It is relevant because accountants, lawyers, and other DNFBPs face professional-services AML risk.
- UK firms should focus on current UK obligations, not imported reform language.
What are Tranche 2 AML reforms?
Tranche 2 AML reforms is a phrase often used in jurisdictions expanding AML rules to designated non-financial businesses and professions, such as lawyers, accountants, estate agents, and trust or company service providers.
Why it appears in UK searches
The topic appears because DNFBP risk is a global issue. Professional firms can be used to create entities, move funds, explain wealth, or give legitimacy to transactions.
UK firm takeaway
UK accountants and law firms should not wait for reform language to act. The practical controls are already familiar: risk assessment, CDD, beneficial ownership, screening, escalation, training, and record keeping.
This guide is general information for UK regulated firms, not legal advice. Check the Money Laundering Regulations 2017, HMRC's money laundering supervision responsibilities, and your supervisor's current guidance before making a compliance decision.