Money Laundering Regulations 2017 and RICS Guidance Flashcards
Money laundering offences are created from?
Part 7 of the Proceeds of Crime Act 2002
What do regulated do firms require regarding money laundering and terrorist financing?
Regulated firms require (MLRO) Money Laundering Reporting Officer
What must RICS regulated firms do in connection with money laundering and terrorist financing?
1) Not facilitate and be complicit in ML or TF activities.
2) Must report any suspicious ML or TF activities.
3) Have systems and training in place to comply with these laws.
4) Evaluate and review risks of prospective and existing business relationships present.
5) Conduct appropriate checks on clients and customers.
6) Only rely on AML information from a reliable third party source who complies with AML regulations.
7) Take measures to understand the client and purpose of the transaction.
8) Verify identity of the client by undertaking basic identity checks.
9) Record and retain information how the firm has met the requirements of this professional statement.
What is the RICS guidance for regulated firms in connection with ML and TF?
Have a policy addressing ML and TF risks that cover the following:
1) Understanding the source of fund in high risk situations.
2) Identify PEPs (Politically Exposed Person), PSCs (Person of Significant Control).
3) Process top be followed for customer due diligence.
4) Simplified due diligence; Standard/ordinary due diligence or Enhanced due diligence.
5) Provide training to staff so they are familiar with ML.
6) Keep records of suspicion of ML.
7) Identify the beneficial owner of a company/client involved with a transaction.
8) Appoint a senior person to deal with the firms ML systems.
What should RICS members do relating to ML and TF?
1) Not facilitate or complicit in ML and TF activities.
2) Must report any suspicios ML or TF activities.
What is the RICS guidance for members in connection with ML and TF?
1) Keep up training/regulation offer to them.
2) Comply with their employers policy and process.
3) Keep records of suspicion of ML and TF activity CONFIDENTIAL.
4) If in a senior management position ensure that their employer has an appropriate regime in place.
What is a risk based approach you should ask yourself?
1) Who you act for?
2) What you are doing?
3) Why you are being asked to do something?
Can you rely on other checks?
Be cautions when relying on other checks done by people/companies.
When are you allowed to depart from AML and TF?
If it is a requirement by legislation or a court order.
What is a compliance and ethics champion?
1) Mainly for larger organisations.
2) Appoint a champion.
3) Promote good practice, and embed ethical standards.
What is a politically exposed person (PEP)?
1) They hold a position of influence.
2) High risk for ML.
3) May need deeper assessment of status.
What is a beneficial owner?
1) Where no specified beneficiary.
2) Ownership could be linked to decision making rights.
3) The person who controls the organisation (PSC).
What is whistle blowing?
1) Firms may have a formal whistle blowing policy.
2) Guidance for whistle blowers.
3) Safe channels of reporting.
What does an AML check list/due diligence consist of?
1) Obtaining client name/company registration.
2) Address/registered office.
3) Proof of ownership/certificate of incorporation.
4) Level of due diligence (KYC) Know Your Client - normal/simplified/enhanced.
5) Beneficial owners/persons.
What are red flags relating to ML and TF?
1) Reluctance to provide information.
2) Trying to rush a transaction through very quickly.
3) Incomplete/inconsistent information.
4) Complex organisational structures.
5) Cask only buyers.
6) Payment from a different source.
7) Representatives reside in high risk countries.
