Financial crime

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Shortened demo course. See details at foot of page.

It is important to note that there is further legislation that applies to firms outside the sectors covered by the Money Laundering Regulations.

Financial Conduct A...

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Shortened demo course. See details at foot of page.

Portfolio management and advice

Safekeeping and administration of securities

Safe custody services

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Financial Ombudsman Service (FOS) free dispute resolution service

The appointment of a Senior Manager responsible: The Money Laundering Compliance Principal (MLCP)

A further appointment (that could be the same person) of a Money Laundering Reporting Officer (MLRO)

The vetting of staff around money laundering

Staff must be trained in anti-money laundering procedures and the law

There must be an internal reporting procedure

Firms must conduct internal audits

The responsible Senior Manager must make an annual internal report

A requirement for Customer Due Diligence (CDD)

- This is needed for all new customers before dealing

- This must be kept for five years

- It must be re-obtained if the customer changes name or address

- It must be re-obtained if there has been no customer contact for 12 months or more

A requirement for Simplified Due Diligence (SDD) or Enhanced Due Diligence (EDD) in some circumstances

MLCP

This is the senior manager ultimately responsible for AML compliance. This appointment is equivalent of the historic CF11 MLRO, now SMF17 with the prescribed responsibility under the Senior Managers Regime. PR4 – “Responsibility for the firm’s policies and procedures for countering the risk that the...

Shortened demo course. See details at foot of page.

HMRC

A firm may be fined proportionately by HMRC for failing to comply with the Money Laundering Regulations.

Businesses supervised by HM Revenue & Customs (HMRC) are subject to requirements, the main ones are summarised below:

The fit and proper test

Part of the registration process for Money Service Businesses and Trust and Company Service Providers: it applies to particular individuals within these businesses. The decision as to whether an individual is fit and proper is in part based on the risk of money laundering or terrorist financing.

Registration

A registration will be cancelled where, after registration, the 'relevant person' is no longer able to meet the conditions for registration or where the relevant person has failed to provide HMRC with information it has requested by notice.

Relevant person

A relevant person is a person or business to whom the regulations apply. The definition includes those persons who HMRC believes or suspects to be a relevant person.

Penalties

A penalty can be imposed for failure to provide information required by notice.

Disclosure

A legal gateway exists between supervisory authorities that allows them to share information subject to certain conditions.