Anti-Money Laundering Audit
To comply with both the FCA and FATF regulations on financial crime prevention and other UK laws and legal requirements, System Day Ltd (the company) has in place firm policies, procedures, audit checklists, objectives, training programs, staff assessments and controls for the mitigations and prevention of financial crime and money laundering.
The company carries out regular audits on all processes, including on our financial crime and anti-money laundering measures, controls and procedures.
Anti-Money Laundering Policy & Procedures
The company and its employees are committed to the highest standards of money laundering and terrorist financing prevention, including anti-fraud, anti-corruption and anti bribery.
We have robust and effective risk assessment and due diligence measures and controls in place to ensure compliance with the current regulations, laws and standards and ensure a continuous practice of monitoring and training for an inclusive approach.
We understand that the money laundering regulations and legislation place a responsibility upon the Company and its employees to combat money laundering across a broad spectrum, including financial transactions, including possessing, or in any way dealing with, or concealing, the proceeds of any crime.
We operate in a transparent environment with assessment, monitoring and reporting at the core of our business functions.
We are dedicated to the prevention of financial crime and continue to improve upon existing measures.
Requirements set out by UK legislation, regulations and rules regarding the prevention, identification and reporting of money laundering or terrorist financing. This includes ensuring that we have adequate systems and controls in place to mitigate the risks posed to the Company and its clients, including the strict verification of, and due diligence checks
This policy provides guidance and a systematic approach for our employees to ensure that their knowledge and understanding of the financial crime regulations is exemplary and sets out our expectations and their responsibilities under the regulations and our own objectives. We provide a broad, effective training program around the money laundering regulations and associated governing body requirements and carry out regular reviews and monitoring to assess and evidence employee understanding and application of those requirements.
The Company will do everything possible to protect its employees and clients from exposure to money laundering and terrorist financing and ensure a company-wide risk based approach for the prevention of financial crime.
Any actual or suspected acts of money laundering will be reported to the NCA and where applicable to the relevant supervisory authority.
This policy applies to all staff within the Company and adherence to this policy is mandatory .
Financial crime is any kind of criminal conduct relating to money or to financial services or markets, including any offence involving: –
a) Fraud or dishonesty; or
b) Misconduct in, or misuse of information relating to, a financial market; or
c) Handling the proceeds of crime; or
d) The financing of terrorism
The Company aim to identify, mitigate and prevent financial crime within its services and activities by implementing policies and procedures that identify, assess, monitor and manage money laundering risks and any other associated risks.
Money laundering is the term used to describe the process or act of disguising or hiding the original ownership of money that has been obtained through criminal acts such as terrorism, corruption or fraud.
Relevant Acts & Regulations
The UK has numerous Acts made by Parliament and regulations that govern money laundering and terrorist funding: –
The Proceeds of Crime Act 2002 provides for the confiscation or recovery of any proceeds from crime and contains the main money laundering legislation. It sets out the legislative scheme for the recovery of criminal assets with criminal confiscation being the most commonly used power, which occurs after a conviction has taken place.
The money laundering provision in this Act, is supported by The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Part 7 provides for various money laundering offences whereby a person commits an offence if they:
- conceal, disguise, convert or transfer criminal property or remove it from England, Wales, Scotland or Northern Ireland
- enter in to or becomes concerned in an arrangement which he or she knows, or suspects facilitates the acquisition, retention, use or control of criminal property
- acquire, use or have possession of criminal property
Part 7 of POCA requires regulated financial institutions and businesses to report to the UK Financial Intelligence Unit, which is part of the NCA, any suspicions about criminal property or money laundering.
The Serious Crime Act 2007 created serious crime prevention orders and contains provisions for information sharing where fraud is a concern. It contains a schedule of what is classed as a serious crime in the UK, which includes: –
- Money Laundering
- Tax Evasion
In the UK, relevant laws and regulations regarding money laundering became effective in 1994. The Money Laundering Regulations 2007 and The Money Laundering (Amendment) Regulations 2012 extended the scope of the Regulations.
The regulations also see the expansion of the Politically Exposed Persons definition and a central register for beneficial owners.
Any organisation to whom the Money Laundering Regulations apply must be monitored by a supervisory authority the HMRC as their supervising authority.
HMRC is the supervisory authority for: –
- Trust or company service providers not supervised by the FCA or a professional body
Organisations regulated by the Money Laundering Regulations are required to appoint a Nominated Officer whose role it is to be aware of any suspicious activity in the Company that might be linked to money laundering or terrorist financing and to report such
- Receiving reports of suspicious activity from any employee in the business
- Considering all reports and evaluating whether there is any evidence of money laundering or terrorist financing
- Reporting any suspicious activity or transaction to the National Crime Agency (NCA) by completing and submitting a Suspicious Activity Report
- Asking the NCA for a defence to a money laundering offence in relation to the transactions that they have reported
- Ensuring compliance with the MLR17 and any related money laundering regulations or codes of conduct
- Developing and implementing anti-money laundering controls and procedures
- Reviewing transactions and carrying out money laundering risk assessments
- Training employees in preventing money laundering and understanding financial crime
Money Laundering Reporting Officer (MLRO)
The MLRO is responsible for oversight of the Company’s compliance with the FCA’s rules on systems and controls against money laundering. The organisation must ensure that their MLRO has a sufficient level of authority and independence within the Company to allow them to perform their role and to have access to resources and information sufficient to enable them to carry out their obligations.
Where an organisation must appoint both a nominated officer and an MLRO, the same employee can fill both roles. Where the Company has appointed an MLRO; they are based in the UK and in addition to any nominated officer obligations, are responsible for: –
- Monitoring operation of the Company’s anti-money laundering policies and procedures
- Responding promptly to any reasonable request for information made by the FCA
HMRC Responsible Person
As an organisation supervised by the HMRC for anti-money laundering, the Company have named on our application all ‘responsible persons’ (those with the legal responsibility and accountability to run/manage the organisation).
In accordance with MLR17, those requiring supervisory approval and/or a fitness assessment within an organisation include any person who is a beneficial owner, officer or manager of a firm.
HMRC Fit & Proper Assessment
The Company confirm that we have registered with the HMRC as part of our anti-money laundering obligations and have ascertained who are the responsible persons with the Company.
These persons have undergone the HMRC’s fit and proper test and their details are noted below.
- the person applying to register the Company
- the person running the Company (either on their own or in partnership)
- officers of the Company (including any director and/or company secretary)
- senior managers who are engaged directly in the provision of regulated activity
- the nominated officer
- beneficial owners of the Company
Written Risk Assessment
As part of the HMRC’s supervisory role in relation to money laundering; they require businesses supervised by them to have a dedicated money laundering risk assessment in writing which is subject to at least annual reviews.
To prevent financial crime and money laundering within our organisation, the Company aims to meet the below objectives: –
- Establish and maintain policies, controls and procedures to mitigate and effectively manage the risks of money laundering and terrorist financing
- The reporting and detection of suspected money laundering to the NCA via an SAR
- All staff are trained and must remain vigilant for the signs of money laundering
- No payment of cash will be accepted by the company if it exceeds £1,000
- Due diligence and client identification procedures are followed by all staff systems
- Review and maintain customer verification and due diligence procedures
- Implement procedures to enable the reporting of suspicions of money laundering
- Maintain record keeping procedures
Abide by the Acts, legislation, regulations and supervisory authority guidance for preventing financial crime, terrorist financing and money laundering
Procedures and Controls
The MLR17 and those supervising financial crime prevention within organisations require that all firms have robust and dedicated policies, procedures and controls in place to combat money laundering. These controls include: –
- Risk assessment
- Customer due diligence
- Monitoring, management and internal communication of policies and controls
- Record keeping
- Staff awareness and training
- Reporting suspicious activity
Internal Controls & Measures
In the risk assessment and prevention of money laundering and terrorist financing, the Company has developed and implemented internal controls and measures designed to identify and mitigate risks. These controls comply with the money laundering regulations and are reviewed annually to ensure adequacy, effectiveness and compliance.
System Day Ltd – the company: –
Has established and maintains policies, controls and procedures for the purposes of preventing money laundering and terrorist financing within the organisation regularly review and update AML policies, controls and procedures and those associated with our AML program – the policies, controls and procedures established o any changes to those policies, controls and procedures made as a result of reviews any steps taken to communicate those policies, controls and procedures, to Company employees
Have appointed an individual who is a member of the board of directors as the officer responsible for AML compliance. The officer and their role has been disseminated to all employees and agents Have through the use of risk management policies and procedures; identified, assessed and effectively managed, the risks associated with being used or exploited for financial crime ensures that adequate resources and funds are made available to address the risk of money laundering and terrorist financing
- Carries out extensive screening of employees and agents
- Has established an independent audit function which: –
examines and evaluates the adequacy and effectiveness of the policies, controls and procedures adopted by us for the prevention of money laundering and financial crime o produces management information, providing improvement measures and associated action plans to the MLRO and Directors o effectively follows up such action plans to ensure completion and compliance of the recommendations
- Has implemented a training program for new starters and existing staff regarding money laundering and financial crime prevention, risk assessing and internal controls
- Has appointed a Nominated Officer and where applicable, we have notified the relevant supervisory authority of their identity and the appointment Has set up Client Identification Procedures, with client verification checks and due diligence being performed on all new and existing customers. The Company never forms a relationship with clients that have not been verified through our strict due diligence measures.
- Has gained verification and evidence from customers, suppliers and employees through due diligence checks and obtain supporting documents
Anti-Bribery & Corruption
The Company operates a zero-tolerance policy with regard to bribery and corruption, we recognise the impact that bribery and corruption have on the prevention of money laundering.
As bribery and corruption are often associated with organised crime and/or money laundering, we are committed to applying high standards of honesty and integrity throughout our organisation and ensure that all staff operate in accordance with the associated policy.
The Company operates a risk-based approach with regard to preventing money laundering and terrorist financing and utilise risk assessments, measures and controls to mitigate the risks.
Our risk-based approach involves: –
- Ensuring that only a dedicated person with the client in question and when assessing the risks of money laundering and terrorist financing, we consider:
- The types of customers we have
- Where those customers are based (FATF high-risk countries)
- Transaction types and volumes
- Products and services offered and/or activities undertaken
- Third-party reliance and/or use
- Customer behaviour monitoring
- Payment processing (i.e. cash, transfers (electronic or wire) etc)
- How funds are allocated, accepted and held
- Internal and external risks (i.e. customers, outsourcing, markets, systems etc)
In accordance with the supervisory authority requirements on preventing money laundering and financial crime, we are operating a risk-based system and ensure that ‘source of funds’ checks and additional verification is obtained on payments below €10,000 when:
- the customer has presented cash in payment for the transaction, which is five times the size of an average transaction for your business, the customer has paid for the transaction by cheque or debit card, which is ten times the size of an average transaction
The Company adheres to and complies with the principles of Know Your Customer, which aim to prevent financial crime and money laundering through client identification and due diligence. We take a risk-based approach and perform strict due diligence checks and ongoing monitoring on all clients, customers and transactions.
As per the money laundering regulations, we utilise 3 tiers of due diligence checks, dependant on the risk, transactions and customer.
- SDD – Simplified Due Diligence is used in instances of extremely low risk, possibly for existing customer checks or those with single, low transactions.
- CDD – Customer Due Diligence is the standard for due diligence checks used in most cases for verification and identification
- EDD – Enhanced Due Diligence is used for high-risk customers, large transactions or specialised instances such as PEP’s or those from the FATF high risk countries.
In accordance with the Joint Money Laundering Steering Group, we adhere to the below core obligations with regard to due diligence: –
- Must carry out prescribed CDD measures for all customers not covered by exemptions
- Must have systems to deal with identification issues in relation to those who cannot produce the standard evidence. Must apply enhanced due diligence to take account of the greater potential for money laundering in higher risk cases, specifically when the customer is not physically present when being identified, and in respect of PEPs and correspondent banking
- Some persons/entities must not be dealt with
- If satisfactory evidence of identity is not obtained, the business relationship must not proceed further
- Must have some system for keeping customer information up to date
Standard Due Diligence Assessment
For those individuals or businesses deemed as low risk; we carry out standard due diligence checks, including background and identify checks performed prior to proceeding with the business relationship.
The Company recognise that due diligence checks are mandatory in the UK when: –
- establishing a business relationship
- carrying out an occasional transaction that amounts to a transfer of funds within the meaning of Article 3.9 of the funds transfer regulation exceeding £1,000
- suspecting money laundering or terrorist financing
- doubting the veracity or adequacy of documents or information previously obtained for the purposes of identification or verification
The Company also recognise the requirement to apply customer due diligence measures where we carry out an occasional transaction that amounts to £15,000 or more, whether the transaction is executed in a single operation or in several operations which appear to be linked.
In addition to our standard new business relationship due diligence measures. We also carry out standard due diligence measures: –
when we have any legal duty during the calendar year to contact an existing customer for the purpose of reviewing any information which: – is relevant to the Company’s risk assessment for that customer, and relates to the beneficial ownership of the customer, including information which enables the Company to understand the ownership or control structure of a legal person, trust, foundation, or similar arrangement who is the beneficial owner of the customer
- at other appropriate times to existing customers on a risk-based approach
- when the Company becomes aware that the circumstances of an existing customer relevant to its risk assessment for that customer have changed
Enhanced Due Diligence Assessment
For those individuals or businesses assessed as being medium to high-risk, the Company carry out extra due diligence checks in addition to the standard searches and verifications. This enhanced due diligence includes checks on financial and criminal background, references, source of funds/wealth, business associates, activities, owner and/or business relationship information and enhanced identity verification.
The Company also investigates the reason for any transactions, the purpose of the business relationship and conducts ongoing monitoring procedures on the customer and business relationship at regular intervals. Enhanced due diligence questions are detailed in our standard due diligence questionnaires but are only completed where the need for EDD or high-risk customers have been identified.
In accordance with MLR17 , the Company applies enhanced customer due diligence measures and enhanced ongoing monitoring
- Where an individual or legal identity has been risk assessed and scored as presenting a higher risk in terms of money laundering or terrorist financing
- Where any obtained due diligence document or response is not conclusive in either proving an identity, or registered/residential address
- Where the customer has not been physically present for identification purposes or in the case of legal entities, where a physical site visit has not taken place
- Where the individual or legal entity is from a non-European Economic Area
- Where the customer or potential customer is a PEP, or a family member or known close associate of a PEP In any business relationship with a person established in a high-risk third country or in relation to any relevant transaction where either of the parties to the transaction is established in a high-risk third country
- In relation to correspondent relationships with a credit institution or a financial institution
- Where a customer has provided false identification documentation or information and the Company proposes to continue to deal with that customer a transaction is complex and unusually large there is an unusual pattern of transactions, or the transaction or transactions have no apparent economic or legal purpose
- In any other case which by its nature can present a higher risk of money laundering or terrorist financing
Additional background checks on financial status, trading history, criminal checks and status are performed and enhanced assessments that our standard customer due diligence does not cover.
Such additional due diligence can include : –
- Obtaining source of funds/wealth
- Additional information on an individual’s position or employment
- Due diligence on family members and close known associates
- Geographical implications
- Transaction history
- Enhanced referencing and additional information on previous, existing, and intended business relationships
- Obtaining information on the reasons for the transactions
Monitoring & Auditing Due Diligence
The Company’s Nominated Officer is responsible for ensuring that due diligence checks, and anti-money laundering measures are being completed and are fit for purpose.
We also carry out bi-annual checks on all identification and background searches and documents held on file to ensure that they are still relevant, adequate and up to date.
Electronic Money & Cryptocurrency
As the Company utilises a form of electronic money as part of its services, we recognise that where an appropriate risk assessment demonstrates a low risk, we are exempt from certain customer due diligence measures with respect to electronic money.
To verify whether the customer due diligence measures apply to a transaction, we review that the below conditions are met: –
- the maximum amount which can be stored electronically is £500
- the relevant payment instrument is used exclusively to purchase goods or services
- anonymous electronic money cannot be used to fund the relevant payment instrument
Where we are the issuer of the relevant payment instrument, we ensure that we carry out sufficient monitoring of our business relationship with the users of electronic money and of transactions made using the relevant payment instrument to enable us to detect any unusual or suspicious transactions.
Where an individual is classed as high-risk, we perform enhanced due diligence checks and ensure that they are flagged as being in a high-risk category.
We consider high-risk to be: –
- Politically Exposed Person’s
- Relatives and/or close associates of PEPs
- Beneficial Owners
- High-net Worth Individual/s
- Customers with large and/or complex transactions
- Unusual transactions or unusual patterns
- Entities registered in Countries classified as High Risk by FATF
- Unregistered Organisations
When assessing whether there is a high risk of money laundering or terrorist financing in a particular situation, the Company utilise our AML Risk Assessment when making decisions about the extent of the measures which should be taken to manage and mitigate that risk. The risk factors that we consider are detailed in the above-named assessment.
Politically Exposed Persons
A Politically Exposed Person is an individual who is or has been entrusted with a prominent function and as such could potentially abuse such a position or function for the purposes of money laundering or other associated offences, such as corruption or bribery. Owing to the high risks associated with PEPs, the Financial Action Task Force recommends that additional AML and due diligence controls and measures are put into place when entering into a business relationship with a PEP.
The Company utilises existing commercial resources and other databases for the identification and verification of PEPs and always ensures that initial due diligence KYC checks include reviewing individual names against those resources and databases to identify PEPs immediately. We also keep our own in-house list of PEPs with which to cross-check KYC data.
The Company utilises additional due diligence measures for all identified Politically Exposed Persons (PEPs) and where such a proposal to establish a business relationship or carry out a one-off transaction with a PEP exists, we always ensure that: –
- Director or Senior Management approval for establishing the business relationship is obtained and recorded
- We take reasonable measures to establish the source of wealth and source of funds
- We conduct enhanced ongoing monitoring of the business relationship
The Company utilises the Central Register and our own verification checks to identify and record Beneficial Owners. Under The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, member states need to create and maintain a directory of the beneficial owners of corporate entities incorporated in their country, which enables extra due diligence measures in verifying what customers have told us about their ownership.
We consider beneficial owners to be higher risk and as such perform enhanced due diligence when developing a new business relationship. We seek to obtain and record: –
- Names of beneficial owners
- Dates of birth
- Nature and description of the beneficial ownership
Whether the beneficial owner is a legal person, trust, company, foundation, or similar legal arrangement and take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement
We utilise individual and business Due Diligence Questionnaires for retaining written records of all the actions the Company has taken to identify the beneficial owner of the body corporate and to verify the identity of the senior person in the body corporate responsible for managing it.
Employee Verification and Screening
We carry out due diligence checks and screening of employees and agents, both before the appointment is made and at regular intervals during the employment/appointment.
Background checks are carried out as standard along with specific skills screening assessment of: –
- the skills, knowledge and expertise of the individual to carry out their functions effectively
the conduct and integrity of the individual
- an understanding of the identification or mitigation of the risks of money laundering and terrorist financing as applicable to our business/industry
- knowledge and skills to ensure prevention or detection of money laundering and terrorist financing as applicable to our business
All documents, accounts and transactions associated with clients/customers are retained as per the legal or statutory retention periods, which currently stands at 5 Years. Details of the below records are retained: –
- Identification and verification records
Due Diligence checks
Credit reference checks
Company incorporation documents
Audit and review records
Our Nominated Officer is responsible for monitoring all anti-money laundering measures and raising SAR’s when needed.
All documents relating to money laundering reporting, business transactions, client identification and customer due diligence are retained for a minimum of 5 years.
The appointed person will ensure that the below minimums are met with regards to the information disclosed on any reports: –
- Full details of the people involved
- Full details of the nature of their your involvement
- The types of money laundering activity involved
- The dates of such activities
- Whether the transactions have happened, are ongoing or are imminent
- Where they took place
- How they were undertaken
- The approx. and/or exact amount/s of money/assets involved
- What has given rise to the suspicion
Using all the information available at the time, the MLRO make an informed decision suspicion of money laundering and to enable them to prepare their report for the National Crime Agency, where appropriate.
Financial Sanctions Reporting
There are numerous UK and EU financial sanctions that apply within their respective territories and apply to all EU/UK persons, wherever they are in the world. The Office of Financial Sanctions Implementation (OFSI) works with the EU Commission in implementing and enforcing these sanctions.
The Company regularly reviews the list published by the OFSI of those subject to financial sanctions imposed by the UK and keeps informed via sanction notices, guidance and news releases of any changes, additions and/or updates.
Our appointed responsible person is accountable for documenting and reporting to OFSI where they have any reasonable cause to suspect that a designated person has committed an offence. We are dedicated to reporting any transactions carried out for persons subject to sanctions or if they try to use our services.
Suspected breach reports are made via the government website below and a deputy appointed person is also aware of and trained on making such reports in the absence of the appointed person. Copies of all reports made are also retained by the Company for a period of 6 years from the date of the initial report submission.
Discrepancies in Registers
Under the MLR17 2019 amendments, the Company recognises the requirement to report discrepancies in registers before establishing a business relationship with: a company which is subject to the requirements of Part 21A of the Companies Act 2006
- an unregistered company which is subject to the requirements of the Unregistered Companies Regulations 2009
- a limited liability partnership which is subject to the requirements of the Limited Liability
- Partnerships (Application of Companies Act 2006) Regulations 2009, or an eligible Scottish partnership which is subject to the requirements of the Scottish
Ongoing Due Diligence & Audits
The Customer Service Team are responsible for the ongoing due diligence checks for the life of the client/customer account, ensuring that all information is kept up to date and that no adverse information has arisen since the last monitoring check was performed. Such checks are to be performed on all existing, active customers on a rolling annual basis.
The Company has implemented a comprehensive Anti-Money Laundering and Financial Crime training program to ensure that all staff responsible for transaction processing and/or initiating and/or establishing business relationships, undergo AML knowledge, competency and awareness training.
Our training methods and sessions are tailored to the business to ensure that staff are aware of the different possible patterns and techniques of money laundering that could occur in their everyday duties and roles.
Our Financial Crime and AML training program ensure that all employees and agents are: –
- Confident and competent in the risk assessment and prevention of money laundering and financial crime
- Made aware of the law and associated regulations relating to money laundering and terrorist financing
- Provided with regular and relevant training in how to recognise and deal with transactions and other activities which may be related to money laundering or terrorist financing
- Given additional training and support where their role is directly relevant to the compliance with any requirement in the regulations, or
- Capable of contributing to the: – o identification or mitigation of the risk of money laundering and terrorist financing o prevention or detection of money laundering and terrorist financing
Under section 333a of the POCA, “tipping off’ is an offence that carries a penalty of an unlimited fine and up to 5 years in prison. The Company takes measures to ensure that deliberate or accidental tipping off is not a risk factor and that no client is intentionally or inadvertently made aware of any SAR or activity investigation that may make them aware of our/NCA suspicions.
Steps that we take to help reduce the risk of ‘tipping off’ include: Employee Training & Awareness – our Anti-Money Laundering & Financial Crime Training Sessions include details on tipping off; including: What constitutes tipping off,examples of tipping off, what the penalties are
The Company have a Data Protection compliance program in place to ensure that we abide by both the Data Protection Act 2018 and the General Data Protection Regulation, both of which govern the processing of information relating to individuals.
As a summary note; we ensure that all customers and those entering into a business relationship with the Company are given access to a clear and compliant privacy notice statement that includes details of our money laundering obligations and how personal data will only be used for the purposes of preventing money laundering and terrorist financing in accordance with the GDPR Article 13 requirements.
The processing of personal data in accordance with these Regulations is lawful and necessary for the prevention of money laundering or terrorist financing and is for the performance of a task carried out in the public interest.
Suspicious Activity Reporting
All staff are aware of their obligation to report any suspicious or suspected inconsistent activities to the Nominated Officer with immediate effect.
As a regulated firm, we are obligated under Part 7 of the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000 (TACT), to submit a SAR in respect of any suspicious or inconsistent actions/information that may come to use or be known to us as part of our usual business. This includes where we have suspect or have reasonable grounds for knowing or suspecting, that a person is engaged in, or attempting, money laundering or terrorist financing.
Our SAR always contains detailed, relevant and informed information alongside a summary for the ease of the persons reading the report. Contact details and reasons for suspicions are noted and where applicable, we will also inform any law enforcement or government agency who may be best placed to utilise or act on the information provided.
Our dedicated Nominated Officer will submit the SAR as soon as is practicable and complete our own internal SAR for record keeping and gap analysis purposes. We understand that we can submit SARs in any format including by post, fax or via the NCA website using their SAR Online system.
All staff are made aware during induction and ongoing training sessions of the importance of reporting any suspicious activity to the Nominated Officer. They are also given clear examples of what could make up suspicious activity.
- Any suspicions of activity that contravenes POCA or MLR17 is reported to the Nominated Officer immediately
- If the activity involves a transaction that can be delayed; the Nominated Officer takes this action as soon as possible
- Any communication from the client regarding a delayed transaction is directed to the Nominated Officer to reduce the risk of inadvertent ‘tipping off
- The Nominated Officer reviews the reported information and completes and internal SAR form
- The Nominated Officer records the decision to file the activity as none suspicious (with supporting evidence) or to submit a SAR via the NCA website
Responsible persons within the organisation who are accountable for the prevention of financial crime and compliance with money laundering rules and regulations are recorded in this policy.
It is the Company’s policy to ensure that Senior Management have developed, implemented, actioned and frequently monitor the below areas in relation to money laundering and terrorist financing: –
- Carrying out a risk assessment identifying where the Company is/could be vulnerable to money laundering (including terrorist financing) and create a summary written risk assessment statement based on the findings and mitigating controls
- Ensure a risk-based approach is taken for managing the identified risks and to allocate resources, funds and staff on those areas deemed to be of higher risk
- Keep all AML associated policies, controls, and procedures up to date and part of a regular review program to ensure that changes, systems, updated laws/regulations and guidance materials are frequently reviewed and monitored to reflect the risks faced by the Company
- Educate and train all employees regarding money laundering risks and prevention and facilitate enough resources and funds for such training, with key focus on employees in roles relating to due diligence or high-risk customers
- Develop, implement, and monitor systems in relation to customer transactions and for activities involving persons/businesses from/based in high-risk third countries (as identified by the EU, FATF or relevant financial sanctions from OFSI)
- Review, approve and monitor any ongoing business relationship with politically exposed person(s) (including family members and/or known associates of PEP’s)
The Company has appointed a Nominated Officer where required and complies with all UK legislation and regulations regarding the prevention and risk mitigation of money laundering. We ensure that all employees are provided with the time, resources and support to learn, understand and implement the AML processes and regulations and are expected to be vigilant to any acts of suspected financial crime.
The Nominated Officer will ensure that any actual or suspected case of money laundering is detailed on a Suspicious Activity Report and is reported to the National Crime Agency immediately.