Anti-money laundering

Where do I report a discrepancy between my due diligence and the PSC register?

Q&A

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I act for a private limited company in the sale of a property. While carrying out customer due diligence (CDD), I found a discrepancy in the information I hold and the Persons of Significant Control (PSC) register. Where should I report this?

Under regulation 30A(3) of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (MLTFR 2019), practices have a responsibility to report any discrepancies between information collected:

from the relevant register and
while undertaking anti-money laundering requirements under the MLTFR 2019 such as CDD or ongoing monitoring

Firms that encounter such discrepancies must report them. However, it’s not a requirement to actively seek out such discrepancies.

The responsibility to report does not apply where the information is subject to legal professional privilege.

You should report a discrepancy to Companies House using the online reporting tool as soon as possible.

For further information, see section 12.6 of the anti-money laundering guidance for the legal sector.

Disclaimer

While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.

Have you got a practice question?

Call the Practice Advice Service on 020 7320 5675 or email practiceadvice@lawsociety.org.uk.

The Practice Advice Service is staffed Monday to Friday from 9am to 5pm.

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