The UK Treasury has removed the need for Account Information Service Providers (AISPs) from its money laundering, terrorist financing and transfer of funds regulation.
The decision was made after 65% of 29 respondents supported the move believing AISPs to be of low risk as they do not directly contact customers’ funds.
Furthermore, the supportive respondents also believe that AISPs are unlikely to influence any kind of money laundering activity, with no evidence suggesting that financial criminals use AISPs as a vehicle.
Several businesses registered as AISPs noted to government officials concerns that they were in the scope of money launderers due to association. The firms also believe that they were negatively impacted by disproportionate and duplicative AML obligations and compliance costs.
Despite the removal, Payment Initiative Service Providers (PISPs) will not be removed for now. PISPs were discussed to go the same way as AISPs but the government is keeping them “within scope for now”.
Although PISPs had the backing for its removal from the regulated sector from stakeholders, as they do not process transactions themselves along with AISPs, there were multiple concerns raised making the change.
One of these concerns is that PISPs possess potentially higher risks associated with them, as opposed to the risks connected with AISPs.
These changes to money laundering regulations comes after the British Treasury launched a consultation on amendments to regulations, in which it highlighted the removal for AISPs.