Electronic funds transfer meaning

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See Q&A: What CDD challenges could remote working present? If your practice falls within the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, you are required to meet the statutory requirements at all times, regardless of how or where you work. The coronavirus (COVID-19) pandemic prompted a widespread move to remote working and has remained widely adopted since; nonetheless, establishing who your client is and verifying their identity remains crucial and central to client due diligence (CDD). Offenders did not stop during the pandemic, and some attempted to exploit the circumstances; indeed, some sought to take advantage of the situation. With remote and hybrid patterns continuing beyond that period, many of the CDD issues first considered then are still pertinent, as criminals continue to seek opportunities to exploit them. You should reflect the risks of acting for clients without face-to-face contact within your firm-wide risk assessment (FWRA). That assessment should then flow through into the policies, controls...

This Practice Note summarises what the SRA Accounts Rules (Accounts Rules) require in relation to receiving and transferring costs, and mirrors the SRA’s supporting guidance: SRA, Helping you keep accurate client accounting records. Money received or held in respect of unbilled fees or disbursements There is a defined meaning of client money. It includes funds you hold or receive towards your fees and any unpaid disbursements where these are received before you issue a bill for them. The SRA elaborates in separate guidance: ‘client money is money of any currency that is received and held as cash, cheque, draft or electronic transfer by a firm when they are providing legal services’. Examples include amounts for the firm’s fees, and any outstanding expert fees, received before a bill has been sent to the client for those sums. Where money held or received for unpaid disbursements is client money, it follows that money held or received in respect of disbursements already paid is office money. The general...

This Practice Note addresses the disclosure duties applying from 6 April 2014 to occupational and personal pension schemes under the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the 2013 Disclosure Regulations). For information on disclosure requirements that apply outside the 2013 Disclosure Regulations, see Practice Note: Event-specific disclosure requirements for occupational and personal pension schemes. For details of the disclosure requirements that applied before 6 April 2014 to occupational and personal pension schemes, see Practice Notes: Occupational pension schemes—disclosure requirements before 6 April 2014 (ARCHIVED) and Personal pension schemes—disclosure requirements before 6 April 2014 [Archived]. In this Practice Note, references to ‘trustees’ include, in the context of a contract-based scheme, the managers of the scheme. Introduction of new disclosure regime from 6 April 2014 The 2013 Disclosure Regulations took effect on 6 April 2014, amalgamating the disclosure provisions previously set out in: the Occupational Pension Schemes (Disclosure of Information) Regulations 1996, SI 1996/1655—repealed, and the Personal Pension Schemes (Disclosure...

STOP PRESS : The Financial Conduct Authority (FCA) has released policy statement PS25/12, setting out definitive, final rules to bolster the safeguarding regime for payment and e-money firms. Flowing from consultation paper CP24/20, these reforms seek to cut deficits in customer funds and secure swifter, more complete returns should a firm collapse. The FCA has additionally issued draft changes to ‘Payment Services and Electronic Money—Our Approach’, which will be revised to mirror the new framework. The new rules, together with the corresponding updates to the Approach Document, come into force on 7 May 2026. (See: LNB News 07/08/2025 11 and News Analysis: FCA’s broad proposals aim to protect customer funds). Ipagoo decided that the Electronic Money Regulations 2011 (EMRs 2011), SI 2011/99 do not impose a statutory trust over relevant funds; rather, they instead confer a distinctive priority interest for customers upon insolvency. The Allied Wallet case similarly applied these principles to safeguarding under the Payment Services Regulations 2017 (PSRs 2017), SI 2017/752. According to the FCA, this stance...

When choosing an electronic verification provider, you should be able to show sufficient understanding of the provider’s (i) system inputs; (ii) the data sources the system uses to confirm identity; (iii) the system’s outputs and what they signify; and (iv) how the system aligns with the relevant provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. Completing this questionnaire will help you reach a risk‑based judgement on whether, at its stated level of assurance, the provider’s systems deliver an appropriate degree of reliability and independence given the potential risks. 1 General Company name [ Insert company name ] Registered address [ Insert address ] Main country of operation [ Insert country ] Additional countries of operation [ Insert country ] Primary contact (name, role and contact information) [ Insert primary contact ] What are the operating hours? [ Insert details ] How is pricing structured? [...

Phishing occurs when someone sends an electronic message, such as an email, intended to deceive recipients, to capture sensitive data—like identities, passwords, and credit card details—or to obtain money by prompting a transfer of funds under false pretences. It steals money or sensitive details too. Our strongest defence against falling for a phishing email is learning to recognise the signs and knowing what to do about them. The table below explains how to identify a phishing email or a phoney request and what to do...