Client Money Handling / AML Flashcards

1
Q

RICS requirements for money handling?

A

In line with RICS Client Money Handling October 2019

 client money must be protected
 client money must be held in a separate client account
 client money used for agreed purposes only
 firms must have procedures and policies in place

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2
Q

What key components do the RICS require in a money handling procedure?

A

RICS Professional Statement on Client Money Handling, October 2019 requires the following:

  • Client must always have access to the funds
  • Client money is separate and clearly identifiable
  • Interest on the account must be agreed with client first
  • Account must not be overdrawn
  • Controls in place to keep account secure
  • Competent and knowledgeable staff to process clients’ money with cover provided for long term absence
  • Client ledger must be maintained
  • Annual audit and reporting obligations by certified accountant employed by RICS
  • RICS Regulatory Review Visits can be undertaken by RICS usually on a routine 3 yearly basis
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3
Q

What is FG’s client money handling procedure?

A
  1. All clients’ money is protected
  2. Held in a separate client account
  3. Client money is only used for the purposes that have been agreed between client/firm
  4. Staff are competent
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4
Q

What is a bank mandate?

A

A bank mandate is:
- Created when the account is set up
- Contract between bank and account holder
- States rights and obligations of the firm
- States the names of authorised signatories

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5
Q

What is unidentified client money?

A

Unidentified client money is where the beneficiary is unknown or
cannot be traced, preventing payment to the client.

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6
Q

Types of client account?

A

Discrete client account
Money held belonging a single client of the firm

General client account
Money held belonging more than one client of the firm

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7
Q

How long must you retain client accounting records?

A

6 years minimum
RICS recommend 15

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8
Q

What is money laundering?

A

Money Laundering is the process of exchanging criminally obtained money or assets (criminal property) for clean money or assets with no obvious link to their criminal origins.

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9
Q

Main money laundering legislation?

A

 The Money Laundering and Terrorist Financing Regulations 2019
 Proceeds of Crime Act 2002
 Criminal Finances Act 2017

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10
Q

What identification do you require on a client to do Customer Due Diligence?

A

Private: identify client and their identity based on a reliable independent source (e.g. passport or driving licence). Proof of address (e.g. bank statement, council tax statement) not more than 3 months old

Company: certificate of incorporation, full name, company number and address of registered office (names of directors and beneficial owners as anyone who has a shareholding of 25% or more)

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11
Q

What is FG’s AML procedure?

A
  1. If I had a ML suspicion, I would not make client aware of suspicion
  2. Discuss with partner in charge
  3. Complete and send FG’s suspicion report form to MLRO & await their further instruction
  4. MRLO decides if to take to the Financial Conduct Agency (FCA)
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12
Q

Who is FG’s MLRO?

A

Alistair Dunne

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13
Q

RICS text on Money Handling?

A

Professional Standard - RICS Client Money Handling, 2019

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14
Q

What to do with unidentified client money?

A

Hold in seperate account for 3 years
Donate to charity
Must obtain receipt

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