LMA responds to HMT consultation in relation to Transposition of the Fourth Money Laundering Directive (the "Consultation")
11 November 2016The Loan Market Association ("LMA") continues to work with our members to ensure that any new or revised regulation does not adversely impact the syndicated loan market or its participants.
The LMA has responded to HMT's Consultation, the purpose of which was to invite views and evidence on the steps that the government should take to meet the UK’s obligation to transpose the Fourth Money Laundering Directive ("MLD 4") into national law.
The fight against money laundering and terrorist financing is of fundamental importance to the members of the LMA. The LMA strongly supports the objectives of MLD 4 and, in particular, the need to provide authorities and obliged entities with greater transparency of information on beneficial ownership. That said, the LMA believes that there are a number of points that would benefit from further clarification in order to avoid disruption to legitimate corporate and retail activities that use these structures and to prevent a negative (and unintended) impact on security agents and lenders in the syndicated loan market.
Commenting specifically on the LMA's response to the Consultation, Nicholas Voisey, LMA Managing Director, said:
"There are clear instances whereby the obligation to disclose the beneficial ownership of legal entities needs to be clarified in order to ensure that the regime operates effectively, is appropriately targeted, and does not create disproportionately burdensome reporting requirements which are of little or no practical use to supervisory authorities. This includes aspects of the People with Significant Control ("PSC") regime and the disclosure of the beneficial ownership of trusts."