Part 5 – Miscellaneous Money laundering and terrorist financing Section 182: Money laundering: exiting and paying away exemptions
Section 182(2), (3) and (4) inserts exemptions from the specified principal money laundering offences in POCA sections 327 and 328. They enable a person carrying on business in the regulated sector to transfer or hand over money or other property owed to a customer or client, in order to end their business relationship, without requiring submission of a DAML.
	The value of the criminal property transferred or handed over must be less than the threshold amount specified in section 339A. The threshold amount can be amended by order made by the Secretary of State.
	Before transferring or handing over the money or other property, the business must have complied with their existing customer due diligence duties under the Money Laundering Regulations 2017. The subsections insert the definition of "customer due diligence duties". For the purposes of sections 327(2D)(d), 328(6)(d) and s329(2D)(d), compliance with customer due diligence duties in practice refers to the business applying due diligence measures to the customer or client as required by regulation 27(1)(a) of the Money Laundering Regulations 2017 and nothing in sections 327(2E)(c), 328(7)(c) and 329(2E)(c) sets any expectations as to the nature, level, standard, or completeness of any due diligence undertaken."
	The exemptions cannot be used by any type of business that has been excluded by regulations made by the Secretary of State.
	Section 182(5) amends section 339A (threshold amounts) to specify that the value below which property can be transferred or handed over is £1,000.
	Section 182(6) inserts the definition of "business relationship" into section 340.