Investment agents will still have to investigate the identity of their clients to comply with new money laundering regulations.
Earlier this week, the Financial Services Authority said it had scrapped proposals that would have forced 10,000 financial companies to carry out a special review of current customers’ identities.
The process was expected to cost industry £170m.
However, the FSA said the move would not release companies from their existing anti-money laundering obligations.
In any case, the rules affecting agents, effective from September, were introduced by the Treasury and are not affected by this week’s decision.
These rules will force agents (which are generally not FSA-regulated) to verify the identity of investors and middlemen.
References: EGi News 24/07/03
