Money Laundering Flashcards
What is the key regulations concerning Money Laundering?
Terrorist Financing and Transfer of Fund (Information on the payer) Regulations, 2017 (amended 2022).
Proceeds of Crime Act 2002
What is money laundering?
When proceeds of crime are disguised or converted and then realised as legitimate assets.
What is the RICS professional statement on money laundering?
RICS Professional Statement: Countering Bribery, Corruption, Money Laundering and Terrorist Financing, 2019
What are the key provisions of the Terrorist Financing and Transfer of Fund (Information on the payer) Regulations, 2017 (amended 2022).
- Firms need to have written money laundering and terrorist financing assessment.
- Implement systems, policies and controls to address money laundering
- Adopt appropriate controls
- Provide staff training
- Comply with new customer, enhanced due diligence requirements.
- Check PEPS (Politically Exposed Persons)
- Ensure record keeping
- AML check must be undertaken to confirm identity and source of funds
- Include additional high-risk factors
How do you and your firm work towards anti-money laundering?
What are the penalties associated with money laundering?
Unlimited Fines
5 years imprison for tipping someone off they are under investigation
14 years imprisonment for assisting in money laundering
What are some red flags for money laundering?
Foreign currency
Cash payments
Sudden change of personnel involved in transaction
Country the person is from is on a sanctions list
Individual is not willing to provide necessary information
Transaction appears to have no apparent economic or legal purpose
What are estate agent’s legal obligations?
- Letting agents to register with HMRC within 12 months of May 2020 if they let individual properties for more than the equivalent of 10,000 euros a month
- Individuals and businesses need to be HMRC approved to trade
*CDD checks on vendors, purchasers, landlords and tenants will have to be undertaken on new sales and any letting or reletting as above
*EDD checks will need to be undertaken if red flags occur
*Firms must have policies in please for out of the ordinary transactions
What is the relevance of sanctions?
There was a new update to Anti-money laundering sanctions March 2022 – in light of the Ukraine conflict.
What are the levels of due diligence and the steps associated with each?
- Customer Due Diligence
- Enhanced Due Diligence
What are some other key requirements of the regulation?
- Limit of 10,000 euros for acceptance of cash
- Detailed record keeping
- Senior staff member must be appointed to Money Laundering Reporting Officer
- Maintain records for 5 years
- Report anything suspicious to NCA
What are the typical requirements for money laundering checks for CDD?
- Identity the client
- Identify the beneficial owners of the client
- For a company, confirm its name, company number and address of registered office
- Names of directors
- Understand information o the purpose of the transaction
How are AML/CDD checks carried out at your firm?
Input company registered name number and address into a questionnaire which is completed and will highlight any areas of concern.
Then circulated to our CDD team who complete the process.
What does Enhanced Due Diligence (EDD) involve? (at your firm?)
Further background checks on funding sources, history and identity checks, especially for PEPs, and well as more extensive monitoring
Specific actions: requesting details of
-UK solicitor: should be able to verify (or not) as will also have carried out their own CDD
-details of verified UK bank account
What would you do if your AML highlights some red flags/suspected of money laundering?
Carry out EDD
If red flags remain: Report to money laundering compliance officer, who will escalate appropriately
