advice anti money laundering guidance for clients and third parties from Biggart Baillie LLP
www.biggartbaillie.co.uk
Biggart Baillie LLP is obliged to comply with the Proceeds of Crime Act 2002, the UK Money Laundering Regulations 2007 and guidance issued by The Law Society of Scotland. We also have our own internal policies. The effect of these is summarised in this leaflet. The Regulations require that, prior to forming any business relationship with any person or entity, we must obtain evidence of the identity of that person or entity. It is a condition of our accepting new instructions that we are provided with information that allows us to verify the identity of the client. In our discretion we will do that either by obtaining originals or appropriately certified copies of the necessary documentation or by checking the identity by such other means as may be appropriate including the use of electronic databases.
Should you require any further information please contact our Director of Finance, Alasdair Davidson (wadavidson@biggartbaillie.co.uk) or our Money Laundering Reporting Officer, on 0141 228 8000.
Where verification will be undertaken by documentary evidence you require to provide us upon request with sight of original documentation confirming the identity and current permanent address of any new client. Photocopies are not acceptable unless certified in a manner we consider acceptable (which will be certification by a professional person or other individual of suitable standing). Similar proof of identity and address is required from third parties who have financial involvement in any matter or transaction on which we are acting for a client. Where the client is not “the beneficial owner” we may also need to verify the position in relation to the beneficial owner. In the event we seek to verify identity by other means you will require to provide us upon request with the necessary information to allow us to do this. If we are not given satisfactory evidence we will be obliged to withdraw from acting. The forms of evidence of identity that are acceptable vary according to whether we are forming a business relationship with an individual, a company or other business, a partnership or a trust. Evidence of identity is not required where the client or third party carries on relevant business falling within certain categories of regulated business as defined by the Money Laundering Regulations 2007 e.g. a UK bank, stockbroker, insurance company, accountant, etc.
Biggart Baillie LLP is regulated and authorised to conduct business as solicitors by The Law Society of Scotland and is subject to its Code of Conduct.
Acceptable forms of evidence of identity are as follows: INDIVIDUALS An individual’s identity is made up of name, address and nationality and these must be subject to verification. We also require their date of birth. To confirm an individual’s name and nationality the following evidence of identity is acceptable: full current national passport current driving licence with photograph signed employer’s ID card In order to confirm an individual’s current home address at least one further item of identity is required from the following list: utilities bill (not more than six months old) council tax demand bank/credit card statement correspondence from HM Revenue & Customs other official correspondence from a government department Note: a mobile phone bill is not acceptable. To confirm the identity of an individual at least one form of identity is required from each of the above two lists. Photocopies of evidence of identity are not acceptable unless certified in a manner satisfactory to us. To verify the identity of overseas individuals it may be impractical for us to meet the individual face to face. We will therefore require certified true copies of the appropriate identity documents. This requires the individual to provide a copy of the appropriate evidence of identity certified by a qualified lawyer or notary, or an embassy, consulate or high commission of the country of the individual’s residence or by a government department. The certification should confirm that the photograph included within the evidence of identity provides a good likeness of the individual.
PRIVATE COMPANIES The principles for verifying the identity of companies are similar to those for individuals. We will require evidence that the company exists as a legal entity and that the company can be located at the registered office. We will also require evidence of identity of the principal shareholders and any other major investors in the company. For private companies we require to obtain the following from official recognised independent sources: a copy of the certificate of incorporation of the company evidence of the company’s registered office address a list of directors and their home addresses the latest filed annual return the latest filed annual accounts This information can be obtained by ourselves through a search at Companies House or other business information services if not otherwise available. The cost of obtaining this information will be charged to the client if the client cannot or does not supply it. For private companies based overseas we may require to obtain the above information directly from the client. We may also require confirmation of the principal business address of the company. It may also be necessary for the firm to verify the identities of the ultimate principal shareholders, investors and directors of a UK or overseas private company. We will need confirmation of beneficial ownership. Subject to the specific position and the nature of the transaction we may therefore require to verify the identity of the beneficial owners of the company. Separately we will require to verify the identity of the director instructing us as if that person was the client. Anti money laundering In addition it will also be appropriate for us to make periodic enquiries to establish whether there has been a change in principal shareholders, investors and directors or in the nature of the business of our client. The Law Society of Scotland’s guidance recommends this when the relationship continues over a long period of time. A similar approach will be taken to LLPs. Anti Money Laundering
PUBLIC COMPANIES
If a client organisation is a UK company and is:
Where the client is a partnership we will require evidence of identity in respect of the partner who is instructing us and one other partner together with satisfactory evidence of the trading address of the partnership. For professional partnerships such as firms of lawyers, accountants or chartered surveyors we will confirm the firm’s existence by reference to the appropriate professional body or directory. No further evidence of identity will be required from partners of professional partnerships.
quoted on the London Stock Exchange or another recognised investment exchange; or confirmed to be the subsidiary of such a company then verifying the identity of the company is sufficient for our purposes. This will be carried out by ourselves by undertaking a search at Companies House in order to obtain a copy of the Certificate of Incorporation of the company and evidence of the company’s registered office address.
PARTNERSHIPS
TRUSTS Where the client is a trust, we are required to verify the identity of:
No other action is required in the case of UK public companies or their subsidiaries. If a company is listed on an overseas stock exchange and we are unable to obtain the relevant information from an independent source then we may request sight of the original documentation from the company confirming the existence, the registered office address, the directors and the principal shareholders of the company.
the settlor of the assets/funds the trustees (at least 2) of the trust the beneficiaries of the trust Evidence of the identity of beneficiaries will be required prior to funds or assets being passed over. The Money Laundering Regulations 2007 also require us to obtain sufficient information about our clients and individual transactions in order to give us comfort that the proceeds of criminal activity are not involved in particular transactions.
Glasgow Dalmore House, 310 St. Vincent Street, Glasgow G2 5QR Tel: +44 (0)141 228 8000 Fax: +44 (0)141 228 8310 Edinburgh No. 2 Lochrin Square, 96 Fountainbridge, Edinburgh EH3 9QA Tel: +44 (0)131 226 5541 Fax: +44 (0)131 226 2278
For more information about our services, visit www.biggartbaillie.co.uk Biggart Baillie LLP is a limited liability partnership incorporated in Scotland with registered number SO301366 and having its registered office at Dalmore House, 310 St. Vincent Street, Glasgow, G2 5QR. ©Biggart Baillie LLP. Issue 3, 2009
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