Handling Clients Money / Money Laundering Flashcards
What documents do RICS produce about handling client money?
Client money handling 1st edition, October 2019 (Professional statement)
What are the requirements for RICS firms when handling client money?
- Keep all client money in a client money account
- Ensure the account includes the name of the ‘client’ in the title of the account
- Register with the RICS client money protection scheme
- Client money accounts only contain the clients money, nothing else
- Ensure client account is not overdrawn
- Interest from client accounts go to the client (unless agreed otherwise)
What would you do if the Client wanted to pay in cash?
Can accept but would need to check photo ID to ensure it was the client and record it
What would you do if the Client wanted to pay £20,000 in cash?
Above the £10k threshold
Can accept but need to record in a suspicious activity activity register
Who would you report suspicious activity to?
to relevant authorities (specified in local legistaltion)
If there is no legislation the activity should be recorded and reported to a senior manager.
What are the RICS requirements for firms on money laundering?
not facilitate or be complicit in money laundering or terrorist financing activities
have training in place
report suspicious activities
verify the identity of their client by undertaking basic identity checks
record and retain information detailing how the firm has met the requirements the professional statement on money laundering
What are the RICS requirements for members on money laundering?
not facilitate or be complicit in money laundering or terrorist financing activities
keep reports of suspicion of money laundering
report any suspicions of money laundering or terrorist financing activities
keep abreast of current training/regulation offered to them either by their employer
comply with their employer’s policy
What is money laundering?
Exchanging money or assets obtained illegally for those that are legitimate.
Illegal money —> legitimate money
What legislation governs money laundering?
- Money Laundering Regulations 2007 (2017)
* Proceeds of Crime Act 2002
At what value do cash transactions becoming notifiable under the money laundering regulations? And what do you have to do?
The value of a cash transaction is 10,000 Euros. If you get this payment you need to have proof of ID, proof of address and you need to report this to the police.
What are the key components of Money Laundering Regulations 2007?
• The act shifts emphasis onto finance and business for identifying money laundering
• QSs are well placed to assess the risks involved with business deposits and identify suspicious
individuals
How do you stop money laundering?
- Confirm client’s identity
- Keep records
- Report anything suspicious
- Seek legal advice
What do you do if Client offers to pay in cash?
- Check client’s bank details
- Take full name and address
- Keep records of business deals for 5 years
What is the Annual Return?
• Does your firm hold Client’s money
• IF so, you have to report account details (name, client, amount)
o RICS auditors will visit periodically resulting in an annual regulatory fee
• Details of directors and principals
• Training procedures in place
• General info about firm and staff and clients (commercial, residential, public authorities)
• Regulatory details like type of surveying services provided, PII, CHP, CMHP etc.
• This informs RICS of need to regulate, helps assess which are higher risk firms to focus on.
• Keep records
What if it is suspicious payment?
SAR. Suspicious Activity Register
