Chapter 29&30 Flashcards
(50 cards)
how does an agent carry out work and services
under the supervision of a business
who can civil penalties or criminal sanctions be imposed on?
the business and any individuals deemed responsible
businesses must have systems and controls capable of:
assessing and managing the risks associated with a client, performing CDD, ongoing monitoring of existing clients, keeping appropriate records, enabling staff to make an internal SAR to their MLRO and monitoring compliance with above policies and communication to staff
AML skills and knowledge of who must be assessed?
relevant employees- does not extend to agents
to perform trust and company services?
MUST be on the HMRC trust and company service register=if not will be subject to disciplinary action or civil/criminal sanctions imposed by HMRC (if member of a professional body will be registered by that body on the trust and company service register-in this case dont need to separately register with hmrc)
what are BOOMs
beneficial owners, officers and managers
what must BOOM be?
approved by the supervisory authority of that business. if convicted of a relevant offence, must inform supervisory authority within 30 days of conviction date, the business must also inform the body within 30 days of becoming aware of the conviction
what is a beneficial owner in an LLp/parntnership?
holds (directly or indirectly) more than 25% of the capital, profits or voting rights OR exercises ultimate control and a shareholder who has 25% or iltimately owns OR ultimately owns or exercises ultimate control
what is a member of the firms management board?
an officer
what is a ‘manager’ in the context of BOOM?
the nominated MLRO officer, member of board of directors, or of senior management, any other principal, senior manager etc who is responsible for setting, approving or ensuring the firms compliance with AML policies and procedures
what do sole practitioners not need to have?
independent audit function
how do the regulations define senior management?
officer or employee of the business with sufficient knowledge of the businesses MLTF risk exposure and with sufficient authority to take decisions affecting its risk exposure
when must approval of senior management be obtained?
policies, controls and procedures, before entering into a continued business relationship with a PEP, before having business with a person in a high risk third country
what is a PEP
includes members of parliament, supreme courts etc
what are the two internal anti money laundering roles?
one primary responsible for receiving internal and making exernal SARs and other for ensuring the businesses compliance with MLTF (in small business they can be the same person)
within how many days must the supervisory body be informed of appointment?
14 days of appointment
what must people in these roles have?
understanding of business/clients, sufficient seniority and authority, time/capacity/resources
where there are deputies/delegated of the MLRO?
the MLRO retains ultimate responsibility for the businesses compliance with the UK MLTF regime
can the mrlo role be split?
yes
what needs to be considered?
risk based approach, CDD, record keeping, internal control, ongoing monitoring, reporting procedures, compliance management, communication
what should records be maintained in writing of?
policies, controls and procedures, any changes to these, steps taken to communicate these
for businesses with overseas branches and subsidiaries?
guidance must establish group wide policies equiv to those in the UK, if not possible must inform AML supervisory body
a risk assessment for taking on new clients must be undertaken at least…
annually
activity which is what may be the suspicions of MLTF?
complex, unusually large or lacks commercial rationale
