Learning Material Sample
Financial crime5. EU Money Laundering Directives The UK enacted all the EU Money Laundering Directives into UK law up to the sixth Directive. Below are some of the highlights that are relevant from these various directives.
Anyone who owns more than 25% of a company has to be identified on a central register Politically exposed persons (PEP) includes those reident in the UK. The threshold for customer due diligence for those deali... Shortened demo course. See details at foot of page. ...minals convicted in “relevant areas” and those under investigation do not hold a management function.
A risk-based approach is taken and all firms are different. The main training staff need is what a firm actually produces in the way of policies and procedures. Written policies & procedures must be in place and may be checked by the relevant supervisory body. The Fifth Money Laundering Directive replaced the Fourth Money Laundering Directive with the intention of improving transparency and the existing preventative framework to more effectively counter money laundering and terrorist financing across the EU.
This came into force in UK national law from 10 January 2020. Some of the key points: Obligated entities Now includes letting agents, Crypto assets, Art intermediaries and wider scope in relation to tax matters. Customer Due Diligence (CDD) Clarity included on what constitutes ‘secure’ el... Shortened demo course. See details at foot of page. ...r of bank account ownershipExtends the information required to be held in the register. For the UK financial services firm, it is unlikely that any of these things will affect day to day business, but firms need to be aware that extra scrutiny is required for any one of: Complex transactions Unusually large transactions An unusual pattern of transactions Transactions without apparent economic of lawful purpose Otherwise most of the provisions are around high-risk jurisdictions and therefore usually irrelevant to firms that conduct business solely within the UK. This Act created an offence of "failing to prevent" tax evasion.
One key thing is that an offence is created where a company fails to prevent its "associated persons" from facilitating tax evasion by a third party and it is world-wide in application. It includes companies incorporated in the UK and also overseas companies that do business in the UK or whose "associated persons" do business in the UK. Companies or partnerships (firms) are liable for failing to prevent tax evasio... Shortened demo course. See details at foot of page. ...preventionBroadcasted ethical policies Contractual clauses around reporting concerns and not engaging Training Safe whistle blowing procedure Monitoring and enforcing preventative measure Regular risk assessments & reviews Other provisions of the Act are: Unexplained wealth orders can be served on individuals Increased investigative powers around money laundering and terrorist finance Information disclosure orders Recovery of the proceeds of crime – improved measures |
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