MLR 2017 (Money Laundering Regulations)
The Money Laundering Regulations 2017 (MLR 2017) are the UK rules that require lenders and other regulated businesses to guard against being used for money laundering or terrorist financing. They set out the obligations to identify and verify customers, understand ownership, screen for risk, and keep records. They apply to a lender regardless of whether the lending falls inside or outside the consumer-credit regime.
- What they require
- Customer due diligence, ownership checks, risk screening, and record-keeping.
- Who they apply to
- Lenders, banks and many other regulated businesses.
- How they relate to POCA
- They sit alongside the Proceeds of Crime Act 2002, which creates the reporting regime.
Customer due diligence under the MLR
The regulations require customer due diligence: identifying and verifying the business, identifying its beneficial owners, and understanding the nature of the relationship. Where risk is higher — for example a politically exposed person, or a complex structure — enhanced due diligence applies. The level of scrutiny is matched to the risk presented.
The MLR and exempt lending
Although lending to a company or LLP sits outside the consumer-credit regime, the Money Laundering Regulations still apply in full. Being exempt from consumer-credit rules does not exempt a lender from anti-money-laundering law. This is why a business borrower is still subject to identity and ownership checks even on lending that the FCA does not regulate.
The MLR and Credicorp
Credicorp applies anti-money-laundering checks under the Money Laundering Regulations 2017 to the UK limited companies and LLPs it lends to, including identity, ownership and risk screening. These obligations apply even though the lending sits outside the consumer-credit regime. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).
See also
- AML — the wider anti-money-laundering framework.
- POCA — the reporting regime that sits alongside.
- KYC — the customer checks the MLR require.
- Due diligence — standard and enhanced.
Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.