CH27- Responsibility and oversight Flashcards
Responsibilities of a business
Must put in place AML systems and controls if business is providing defined services
Need to monitor compliance with regulations and ensure they are familiar with requirements
Communicate procedures to employees and ensure adequately trained
Less strict requirements for sole practitioners
Senior management responsibilities
Senior management approval is required for policies, controls and procedures
Approval needed for types of business relationships- Politically Exposed Person, family members
Must be appropriately trained
Appointing an MLRO
Appoint a MLRO (nominated officer)
Supervisory authority must be informed within 14 days- names of senior management and MLRO
Single individual may fulfil both functions in certain organisations
Role of the MLRO
Overseeing and being involved in risk assessments
Creating and maintaining business’s risk based approach
Supporting and co-ordination with management on their AML responsibilities
Ensuring all relevant documentation is retained
Development of customer DD responsibilities
Taking remedial action when controls ineffective and suggesting improvements
Annual reports to the Board with assessment of effectiveness of business’s systems
The role can be split, but ultimate responsibility with stay with ONE individual
Need to undertake CPD appropriate for role
Implementation and documentation of policies and procedures
Risk management procedures Internal controls Customer due diligence Reliance and record keeping Compliance with all policies, controls and procedures Communication Ongoing monitoring
Risk assessment and management
Different risk classifications should exist- low, medium, high
Policies and procedures should be tailored to level of risk
Reviews at least once a year
Customer due diligence (CDD)
CDD= the process by which the identity of a client is established and verified, for both new and existing clients
Responsibility for developing CDD policies and procedures rests with MLRO
Ensure relevant employees can take informed decisions in light of associated risks
Training required
Occasional transaction
Outside business relationship
Value of > 15,000 euros
Internal policies
Provide clear courses of action for anyone who has knowledge or suspicion of SML
How they should report concerns MLRO
All relevant employees appropriately trained
Record keeping
5 year retention period
Ongoing training
Formal training programme recommended, but should tailor individuals needs
If training not given, breach of duty to provide by business
Employee screening
Evidence recorded and retained
Sole practitioner
Only needs to appoint a MLRO
When is a member required to consider Criminal Finances Act 2017
When operating through incorp bodies or partnerships
