Anti-Money Laundering Policy & Procedure
The Firm will do all it can to prevent both it and staff being exposed to money laundering, to identify the potential areas where it may occur, and to comply with all legal and regulatory requirements, especially with regards to the reporting of actual or suspected cases.
1.1 The Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2007 place obligations on the Firm and its employees with respect to suspected money laundering.
2 Scope of the Policy
2.1 This Policy applies to all employees and aims to maintain the high standards of conduct which currently exist within the Firm by preventing criminal activity through money laundering. The Policy sets out the procedures which must be followed (for example the reporting of suspicions of money laundering activity) to enable the Firm to comply with its legal obligations.
2.2 This Policy sits alongside the Firm’s Fraud and Corruption & Whistle Blowing Policy.
2.3 Failure by a member of staff to comply with the procedures set out in this Policy may lead to disciplinary action being taken against them.
3 What is money laundering?
3.1 Money laundering is the term used for a number of offences involving the proceeds of crime or terrorism funds. The following acts constitute the act of money laundering:
•Concealing, disguising, converting, transferring criminal property or removing it from the UK (section 327 of the Proceeds of Crime Act 2002);
•Entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (section 328); or
•Acquiring, using or possessing criminal property (section 329).
These are the primary money laundering offences, and are thus prohibited acts under the legislation. There are also two secondary offences: failure to disclose any of the three primary offences and tipping off. Tipping off is where someone informs a person or people who are, or who are suspected of being involved in money laundering, in such a way as to reduce the likelihood of their being investigated or prejudicing an investigation.
Any member of staff could potentially be caught by the money laundering provisions, if they suspect money laundering and either become involved with it in some way and/or do nothing about it. This policy sets out how any concerns should be raised.
While the risk to the Firm of contravening the legislation is low, it is important that all employees are familiar with their responsibilities: serious criminal sanctions may be imposed for breaches of the legislation. The key requirement on employees is to promptly report any suspected money laundering activity to the Money Laundering Reporting Officer.
4 Policy Statement
4.1 Our Policy is to do all we can to prevent, wherever possible, the Firm and its staff being exposed to money laundering, to identify the potential areas where it may occur, and to comply with all legal and regulatory requirements, especially with regard to the reporting of the actual or suspected cases. We cannot stress too strongly, however, that it is every member of staff’s responsibility to be vigilant.
5 The Money Laundering Reporting Officer (MLRO)
5.1 The officer nominated to receive disclosures about money laundering activity within the Firm is Mr. Ozi Uddin. They can be contacted as follows:
1 Berner Terrace
Telephone number: +44 (0) 796 000 111 6
6.1 No payment will be accepted in cash if it exceeds £…15,000…
6.2 Any employee who suspects money laundering activity must report their suspicion promptly to the MLRO, or to the MLRO’s deputy if appropriate. If you would prefer, you can discuss your suspicions with the MLRO or their deputy first.
6.3 The employee must follow any subsequent directions of the MLRO or deputy, and must not themselves make any further enquiries into the matter. They must not take any further steps in any related transaction without authorisation from the MLRO.
6.4 The employee must not disclose or otherwise indicate their suspicions to the person suspected of the money laundering. They must not discuss the matter with others or note on the file that a report has been made to the MLRO in case this results in the suspect becoming aware of the situation.
6.5 The MLRO or deputy must promptly evaluate any disclosure to determine whether it should be reported to the National Crime Agency (NCA).
6.6 The MLRO or deputy must, if they so determine, promptly report the matter to NCA on their standard report from and in the prescribed manner.
6.7 The MLRO or deputy will commit a criminal offence if they know or suspect, or have reasonable grounds to do so, through a disclosure being made to them, that another person is engaged in money laundering and they do not disclosure this as soon as practicable to the SOCA.
Identification of Clients
6.8 Where the firm is carrying out “relevant business‟ and, as part of this:
(a) forms an ongoing business relationship with a customer; or
(b) undertakes a one-off transaction involving payment by or to the customer of €10,000 (or the current equivalent in Sterling) or more; or
(c) undertakes a series of linked on-off transactions involving total payment by or to the client(s) of €10,000 (or the current equivalent in Sterling) or more; or
(d) it is known or suspected that a one-off transaction (or a series of them) involves money laundering;
then the Customer Identification Procedure (as set out below) must be followed before any business is undertaken for that customer.
6.9 Seek additional evidence of identity, for example:
•checking with the customer to confirm their UK address/proof of residency:
•Checking photographic ID;
•seeking further evidence of personal identity and employment details/NI Number.
6.10 Where “relevant business‟ is carried out then the customer identification evidence and details of the relevant transaction(s) for that customer must be retained for at least five years.
7 Guidance and Training
7.1 In support of the policy and procedure, the firm will:
•make all staff aware of the requirements and obligations placed on the Firm and on themselves as individuals by the anti-money laundering legislation; and
•give targeted training to those most likely to encounter money laundering.
8 Further Information
8.1 Further information can be obtained from the MLRO and the following sources: