AML Flashcards
What is money laundering?
Money laundering = when proceeds of criminal activities are disguised or converted and then realised as legitimate assets.
What is Colliers money laundering reporting policy?
In-line with RICS Professional Standard on Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
If you suspect, report to Money Laundering Reporting Officer (Zoe Harris) – they will engage with authorities (National Crime Agency).
Who is Colliers money laundering reporting officer?
Zoe Harris
What are the key provisions of The Money Laundering, Terrorist Financing Transfer of Funds Regulations (2017)?
- Written ML & TF assessment
- Implement systems to address risks
- Adopt internal controls
- Staff training
- Comply with due diligence requirements
- Comply with PEPs requirements
- AML checks undertaken of proposed purchasers
- Additional high-risk factors for enhanced DD
Other requirements:
10,000 euros limit for cash
Appoint a senior member to control compliance
Nominated Money Laundering Reporting Officer – report suspicions with SAR (suspicious activity records) to the National Crime Agency
Maintain records for min of 5 years
Report to Companies House of any discrepancies
What are estate agents’ legal obligations in relation to Money Laundering?
Individuals/businesses need to be approved and remain registered by HMRC in order to trade.
CDD checks – will need to be registered with HMRC to trade
EDD checks are undertaken if red flags occur
What are the penalties for a failure to comply with AML?
Money Laundering assistance = up to 14 years and unlimited fine
Tipping off a suspect = 5 years and unlimited fine
Report to the National Crime Agency
What must a firm do under the money laundering regulations?
Staff training
Adopt internal controls
Comply with customer DD
Limit of 10,000 euros on the acceptance of cash
Must register with HMRC on an annual basis.
What What government sanctions are there?
Sanctions list (HM Treasury’s Office of Financial Sanctions Implementation (OFSI))
Proceeds of Crime Act (2002)
Economic Crime Act (2022)
What is the Economic Crime Act (2002)?
The Economic Crime (Transparency and Enforcement) Act 2022 is a significant piece of UK legislation aimed at tackling illicit finance, particularly in the property market. It was fast-tracked through Parliament in response to the Russian invasion of Ukraine, amid concerns about dirty money flowing through the UK. Key objectives:
• Increase transparency of overseas ownership of UK property. • Strengthen powers to seize criminal assets. • Improve the enforcement of sanctions.
Additional measures of beneficial overseas owners of property in the UK.
Strengthens investigation powers and UWOs (unexplained wealth orders) - Easier prosecution of those involved.
What is the Proceeds of Crime Act (2002)?
Provides powers of enforcement to authorities and creates criminal offence intended to combat AML offences.
3 Offences:
1. Concealing criminal property
2. Arrangements for facilitating criminal property
3. Acquisition or possession of criminal property
Has the Ukraine conflict changed government and your actions in relation to AML/terrorist financing?
UK government has issued wider sanctions in a March 2022 update.
Firms/personal actions:
Consider sanctions list
Better eye on red flags
Checking individual clients against HM Treasurys ‘consolidated list’
If client is a match = contact Office for Financial Sanctions Implementation (OFSI)
How would you carry out due diligence on a client?
Client proof of name, address
Directors names
3 years of audited accounts
Speak with in house AML team to further EDD checks if required.
What did your training for Client Due Diligence/AML include?
How to spot red flags
Where to search for company director information
How to assess company accounts, although I am not qualified to provide financial advice
What is a red flag of money laundering?
If a party:
Requests to pay in cash
Withholds identity documents
Unusual features, such as unexpected urgency or unusual behaviour or unusual currencies.
What are the penalties for assisting Money Laundering and failing to tip off?
For assisting in Money Laundering – maximum 14 years imprisonment and/or unlimited fine.
For tipping off – maximum 5 years imprisonment and/or unlimited fine.
What are forms of identity do you need for carrying out CDD?
Passport
Driving Licence
Bank Statement for POA
Why do we carry out CDD?
To protect both ourselves, consumers and the public against corruption, money laundering and other forms of the financial misconduct such as terror financing.
Why do we carry out CDD?
To protect both ourselves, consumers and the public against corruption, money laundering and other forms of the financial misconduct such as terror financing.
When would you not carry out CDD?
Would always carry these out
Red flag – go straight to Enhanced DD
When do you carry out counterparty CDD?
When undertaking EDD
Complying with AML checks
Who is responsible for carrying out CDD?
Company on the instruction (agent)
What regulations and legislation covers CDD?
The Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017)
RICS Professional Standard: Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
What money laundering regulations or legislation are you aware of?
The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
Sanctions and Anti-Money Laundering 2018
Update: RICS Anti-Money Laundering Sanctions 2022
Proceeds of Crime Act 2002
