The Investing and Saving Alliance (TISA) has today urged HM Treasury not to miss key opportunities in its draft reforms to the Money Laundering Regulations (MLR) to modernise the regime and improve financial inclusion.
TISA’s response to the policy note welcomed the intention behind the reforms to reduce compliance costs but called on HM Treasury to go further to address duplication, outdated processes, and a lack of clarity in certain areas, all of which remain barriers to efficiency and effectiveness.
Sophie Legrand-Green, Head of Policy at TISA, said:
“While we support the direction of travel of the reforms, the Treasury’s proposals do not quite go far enough. Reform of the Money Laundering Regulations presents a clear opportunity to reduce duplication, modernise processes, and improve access for consumers without compromising the fight against financial crime.
The changes we propose would achieve this, allowing firms to focus resources where they are most needed. TISA stands ready to work with HM Treasury and HMRC to help deliver a financial crime framework that is effective, proportionate, and future-ready.”
TISA’s recommendations for HM Treasury are to:
- Prioritise Digital ID legislation: Introduce secondary legislation to enable digital identity solutions, allowing firms to plan and implement changes efficiently while improving customer experience.
- Reduce duplication through Companies House reforms: Permit regulated firms to place reliance on Companies House verification checks, cutting unnecessary duplication and compliance costs.
- Adopt a collaborative, digital Trust Registration Service model: HMRC should issue clear guidance on what must be reported, create a secure portal for MLR-regulated firms to verify TRS data, and consult on a unique trustee reference.
