ML 1.1 Application

ML 1.1.1R01/12/2001

(1)
This sourcebook applies to every relevant firm (see ML 1.1.2 R) with respect to its relevant regulated activities (see ML 1.1.4 R), but there are special provisions in ML 8.1and ML 8.2 for sole traders with no employees and authorised professional firms.
(2)
Some provisions also relate to the money laundering reporting officer of a relevant firm in his capacity as an approved person (see ML 7.1).

Who?

ML 1.1.2R01/12/2001

(1)
In this sourcebook, "relevant firm" means every firm, except:
1. (a)
  a firm whose only regulated activities are those specified in ML 1.1.4 R (1);
2. (b)
  a UCITS qualifier.
(2)
An incoming firm is a relevant firm, but only to the extent that it is conducting activities from an establishment in the United Kingdom.

ML 1.1.3G30/10/2004

The scope of this sourcebook is very wide. It includes all firms except:

(1)
those within the limited exception for firms concerned only with certain insurance activities and UCITS qualifiers (see ML 1.1.2 R); in this respect, the chapter follows article 1 of the Money Laundering Directive (No.91/308/EEC as amended by No 2001/97/EEC); 2
(2)
those within the exception for firms carrying on any 2 mortgage mediation activity (see ML 1.1.4 R (5)); in this respect, the chapter follows[article [] of the [] [to be added when 2003 Money Laundering Regulations are in final form]].2

The scope extends to incoming firms (such as branches of institutions established elsewhere in the EEA), except those providing only cross border services in the United Kingdom. This is because the Directive is designed to apply on a "Host State" basis. ML does not apply with respect to the unregulated activities of a firm, for example money service business.3 1

ML 1.1.4R30/10/2004

(1)
general insurance business;
(2)
long-term insurance business which is outside the First Life Directive (and is not otherwise a relevant regulated activity);
(3)
business relating to contracts which are within the Regulated Activities Order only because they fall within paragraph (e) of the definition of " contract of insurance " in article 3 of that Order (see the Glossary );2
(4)
1. (a)
  arranging, by the Society of Lloyd's, of deals in general insurance contracts written at Lloyd's; and2
2. (b)
  managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's; and 2
(5)
mortgage mediation activity.2

ML 1.1.5R01/12/2001

This sourcebook applies only in relation to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom.