Money Laundering Flashcards
What is money laundering
Money laundering is the process of legitimising money received through criminal activity.
In relation to money laundering and terrorist financing RICS-regulated firms must
not facilitate or be complicit in money laundering or terrorist financing activities.
have systems and training in place to comply with these laws, and ensure these are followed.
report any suspicions of money laundering or terrorist financing activities to the relevant authorities.
evaluate and review periodically the risks that prospective and existing business relationships present.
take appropriate measures to understand the client and the purpose of the transaction.
verify the identity of their client by undertaking basic identity checks.
record and retain information detailing how the firm has met the requirements of this professional statement.
In relation to money laundering and terrorist financing RICS members must
Not facilitate or be complicit in money laundering or terrorist financing activities.
Report any suspicions of money laundering or terrorist financing activities to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.
RICS professional statement in relation to money laundering
Countering bribery and corruption, money laundering and terrorist financing 1st edition, February 2019 - Effective from 1 September 2019
RICS-regulated firms should
have a written policy addressing money laundering and terrorist financing risks that covers the following issues:
–in high risk situations where enhanced due diligence is required, understanding the source of funds in a transaction
–identifying PEPs, PSCs and any potential breaches of sanctions
–the process to be followed for customer due diligence
–the situations in which simplified due diligence, standard/ordinary due diligence, or enhanced due diligence will be appropriate
have appropriate governance and systems controls in place, proportionate to the type of work the firm does
provide appropriate, recurring training for staff, to ensure they are familiar with the risks and the firm’s systems
keep reports of suspicion of money laundering and terrorist financing activity confidential
identify the beneficial owner of a company/client involved within a transaction
appoint a senior person to be responsible for ensuring anti-money laundering and counter-terrorist financing policies are in place and complied with.
RICS members should
keep abreast of current training/regulation offered to them either by their employer or by a regulator addressing money laundering or terrorist financing.
comply with their employer’s policy and process.
keep reports of suspicion of money laundering and terrorist financing activity confidential
if in a senior management position, take a leadership role in attempting to ensure that their employer has an appropriate regime in place
You may have to register with HMRC if your business operates as a high value dealer if
a single (or several for the same transation) cash payment of €10,000 or more for goods.
you’re an agent or auctioneer who does not own the goods
My firm is not registered as a high value dealer because
cash payments in excess of £1,000 are never accepted and credit/debit cards are only ever used.
My firms policy is
Never accept cash payments more than £1,000
Risk assessments
I understand that a risk assessment should be carried out on an annual basis.
Assessments must consider;
Customers
Geography - selling assets to high risk countries
Products and services - Plant is deemed high risk
Transactions - Complicated transactions
Policies controls and procedures
This need to be reviewed on an annual basis and that the staff fully know what the policies are.
Customer due diligence
Should be undertaken by asking for government provided documents such as passport and driving license to confirm identity
Relevant laws
Money Laundering, Terrorist Financing and Transfer of Funds - Regulations 2017
The EU’s 5th Money Laundering Directive came into force on 10 January 2020
Nominated officer
Contact point for HMRC
Responsible for SAR’s (Suspicious Activity Reports)
Legal requirement
