Will AML rules apply if I am an Appointed Representative of Expert Analysis Group?

Yes, Anti-Money Laundering (AML) rules will apply if your firm is an Appointed Representative (AR) of a principal firm in the UK. Both the principal firm and the AR are expected to comply with AML regulations. Here’s how it generally works:

Responsibility of the Principal Firm: The principal firm, which is fully authorised by the Financial Conduct Authority (FCA), takes on the responsibility for ensuring that its ARs comply with all relevant financial regulations, including AML rules. The principal firm must oversee the activities of its ARs and ensure they adhere to the same standards of compliance as if the services were being provided directly by the principal.
Compliance Obligations: As an AR, your firm must adhere to the AML frameworks and practices set by your principal. This includes conducting proper customer due diligence, monitoring transactions for suspicious activities, and maintaining appropriate records.
Training and Procedures: The principal firm must also ensure that ARs are properly trained in AML compliance and are familiar with the procedures necessary to prevent, recognise, and report money laundering activities.
Regulatory Oversight: Both the principal and its ARs can be subject to regulatory scrutiny by the FCA to ensure compliance with AML regulations. Non-compliance can lead to significant penalties, legal consequences, and reputational damage.

In summary, being an AR does not exempt your firm from complying with AML regulations; rather, it places the onus on both the principal and the AR to ensure that all operations are in line with legal requirements. Your firm should actively collaborate with the principal to ensure all AML policies and procedures are properly implemented and followed.