PERSONAL GUIDE ON THE PREVENTION AND DETECTION OF FINANCIAL CRIME (2014/15) Your personal guide to the obligations placed on you by the laws, acts, regulations, orders and rules to prevent and detect;
PROCEEDS OF CRIME
TERRORIST FINANCING
INTERNATIONAL SANCTIONS
This booklet: 1. Is designed to help you and your business meet both international (e.g. FATF) and local requirements (legal and regulatory) on the risks associated to the proceeds of crime. 2. Provides a summary of the key “Prevention and Detection” measures that you and your business must discharge to ensure you are provided the protections of law and underlying rules.
MONEY LAUNDERING - DISGUISE & DISTANCE & THE PROCESS MONEY LAUNDERING (ML) – CRIME, MONEY & BENEFIT
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Most crime is committed for financial benefit and this creates the proceeds of crime or more commonly referred to as the process of Money laundering. Money laundering is simply a process of hiding, disguising and distancing its origins so that the criminal’s property and/or activity (the criminal benefit) appear to be legitimate. (see page 2, fig 1 and page 3, fig 2)
MONEY LAUNDERING AND TERRORIST FINANCING (TF)
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Although criminals and terrorists have different aims, they both want to avoid their money drawing attention to their activities. Consequently they use similar techniques to cover the trail. Therefore, following the money trail and knowing a clients profile is a vital source of intelligence that can lead to the apprehension of criminals and terrorists.
DISCONNECT & DISTANCE CRIMINAL & TERRORIST
CRIMINAL CONDUCT
DISCONNECT
DISCONNECT
CRIME
CRIMINAL BENEFIT CRIMINAL BENEFIT
CRIMINAL PROPERTY
VICTIM Fig.1
THE INTERNATIONAL SANCTIONS (IS*)
Alongside ML and TF, IS must be managed appropriately. IS are actions taken by countries against others for political reasons, either unilaterally or multilaterally. There are several types of sanctions including economic, trade and individual. Sanctions deal with individuals (e.g. those deemed to be terrorists) that particular countries consider undesirable. Economic sanctions are applied and typically take the form of tariffs or similar measures, whereas trade sanctions typically ban trade, possibly limited to certain sectors such as armaments, or with certain exceptions (such as food and medicine). The consequences of breaching sanctions are extremely serious and almost always lead to heavy fines and significant reputational damage. *Key sanction lists to be aware of are to be issued by the UN, EU, HMT & OFAC.
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CRIMINAL ACTS + PREVENTION + DETECTION
about the process of ML.
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In all well regulated jurisdictions it is an offence to process (launder) criminal and/or terrorist property and/or make payments to those subject to IS. In addition, there are laws that require everyone working in financial services and other relevant occupations to take steps to PREVENT their services being used by money launderers by having systems to DETECT criminality and where there are suspicions to REPORT them to an appropriate officer (e.g a MLRO). To enable you to prevent and detect you should have an idea
The process can be shown as follows:
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SOURCE OF WEALTH (APPARENTLY RESPECTABLE INCOME) “INTEGRATION” - ESTABLISHING A LEGITIMATE SOURCE OF WEALTH for example
- invest in shares, bonds, pensions, etc. - purchase rental property - take over an established reputable business
UNTRACEABLE FUNDS ARRANGEMENT RISK
“LAYERING” - COVERING THE TRAIL
ARRANGEMENT RISK
for example
- move money through many accounts - use corporate bodies of unclear ownership - buy investments and sell immediately UNEXPLAINED CASH
TRACEABLE FUNDS
INCRIMINATING INSTRUCTIONS & TRANSACTIONS
“PLACEMENT” - GETTING THE ILLEGAL CASH INTO THE FINANCIAL SYSTEM for example
CASH CRIMES for example
- deposit cash into bank accounts - buy tradable assets for cash
WHITE COLLAR for example
- investment fraud - embezzlement - tax evasion - inside dealing
- drug dealing - terrorism - smuggling - money transfer
CRIMINAL “PROPERTY &/OR CONDUCT”
HOW YOU ARE AFFECTED
Fig.2
Your key responsibility is to follow your firms rules and be alert for signs of money laundering activity*, and to report to a relevant officer in your organisation of any suspicions that may arise.
*For the purposes of this booklet the term Money Laundering will capture not only the Proceeds of Crime but Terrorist Financing and Sanction Risks.
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YOUR INTERNATIONAL ANTI MONEY LAUNDERING (AML) FRAMEWORK Like your counterparts elsewhere in the world you work under a legal and regulatory structure that imposes serious obligations on both you and your firm to prevent and detect money laundering.
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These obligations are driven by International Organisations and Governments who are working together to combat crime and terrorism. The responsibility chain can be shown as follows:
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UNITED NATIONS
UN issue orders and directives that require all member states to freeze the assets of specified target groups such as terrorists INTER-GOVERNMENT BODIES
The Financial Action Task Force (FATF) sets out legal regulatory standards for governments and international organisations
EU Directives set out mandatory provisions which member states must enact in their own legislation YOUR GOVERNMENT Your legislature enacts laws and regulations, and authorises regulatory bodies to supervise their observance YOUR REGULATOR Regulatory bodies have extensive powers to enforce Laws, Regulations, Rules and Guidance YOUR FIRM Every regulated firm and institution must have compliant policies and procedures that all staff must follow YOU You must understand why & how to discharge your obligations
Fig.3
4
YOUR OBLIGATIONS
INTERNATIONAL OBLIGATIONS
EUROPEAN UNION (IF APPLICABLE)
KEY FACTS - THE PRINCIPAL LAWS AND REGULATIONS It’s illegal for anyone to help criminals or terrorists with their ill-gotten gains, property and/or make payments to those shown on an international sanction lists. Additional legal measures apply to people working in regulated businesses principally financial services and the legal and accountancy professions.
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These measures take the form of Laws / Acts / Regulations / Orders and Guidance. Different jurisdictions define crime and terrorism predicating the offence of money laundering in different ways.
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In practice almost all serious crimes (all crimes) are capable of predicating money laundering offences in most jurisdictions. Examples of crimes include drug trafficking, people trafficking, terrorism, fraud, robbery, prostitution, illegal gambling, arms trafficking, bribery and corruption. Money laundering offences assume that a criminal offence has occurred in order to generate the criminal property. This is often known as a predicate offence. No conviction for the predicate offence is necessary for a person to be prosecuted for a money laundering offence. In considering criminality and your exposure please consider whether your jurisdiction has a single or dual criminality test: » »
A dual criminality test requires a client’s actions to be recognised as a crime both in the country where it is committed and the country where a possible laundering offence takes place. A single criminality test simply requires the country in which the benefit of the crime sits to regard the activity that generated the relevant property as criminal irrespective of whether it is criminal in the country where the crime took place.
YOUR ML/TF ENVIRONMENT
OTHERS
TERRORISM
DRUGS
INSIDER DEALINGS
BRIBERY & CORRUPTION
TAX
“CRIMINAL” ML/TF LAWS (LAWS, ACTS, REGS, ORDERS)
CRIMINAL SANCTIONS (ACTIVITY, TRADE AND INDIVIDUAL) REGULATORY RULES AND CODES
SINGLE/DOUBLE CRIMINALITY TESTS?
PREDICATE ‘ALL CRIMES’
OVERSEAS (EG. EXTRADITIONAL) Fig.4
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CDD - WHAT YOU HAVE TO DO TO PROTECT YOURSELF You must be alert for possible instances of money laundering in your work, however ‘keeping an eye out’ is not enough. You must record and follow specific Anti Money Laundering (AML) prevention and detection policy and procedures, focusing on effective Client Due Diligence (CDD).
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Client Due Diligence (CDD) - The Five Stages - Key Facts 1. CDD Stage 1- Collect Sufficient Identification (ID)
• You must collect photo, address and other relevant documentation. N.B. It must be legible and up to date. • This information provides the foundation for stages 2-5.
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2. CDD Stage 2 - Assess the Client Risk (CRA)
• With all new business, you must assess the money laundering risk to decide the level of due diligence to apply. • In some cases Enhanced Due Diligence (EDD) is required from the outset - for example when a client is a ‘Politically Exposed Person’ (PEP). • Your procedures assess the risk for the different types of clients, services, countries and delivery channels you cover.
3. CDD Stage 3- Verify Identity (to complete ID+V) • Criminals and terrorists often use false names or hide behind entities such as private companies. • You need to verify the identity of clients, the people in control, and the beneficial owners of assets involved. • Your procedures specify the steps you must take, according to the assessed level of risk. • Be sure to apply the appropriate risk level from the outset, as it can be difficult going back for additional identification later.
4. CDD Stage 4 - Know your Client’s Business (KYCB) • You need to understand the nature and purpose of the services your clients want you to provide. This usually includes knowing the source of funds/wealth, the anticipated size and frequency of transactions, and their reason for choosing your firm (often referred to as profiling). • The level to which you must exercise this aspect of CDD depends on the assessed level of risk.
5. CDD Stage 5 - Ongoing Monitoring • Remember CDD is an ongoing process. • As client relationships develop, you must check that your CDD information is up to date, and that arrangements and transactions are consistent with the business that was anticipated. • You must be alert to the unexpected so that you can consider whether it gives grounds for suspicion, or indicates that a reassessment should be made of the level of money laundering risk. 6
CDD AT EVERY STAGE - THROUGHOUT THE 5 STAGES YOU MUST: CDD- Keep Records • Keeping accurate records is important throughout your client relationship and CDD process.
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• Transaction details with destinations, sources, amounts, names and dates must be recorded. • Where the money laundering risk is greater, your procedures must require fuller records that may include the purpose of specific arrangements, the identities of parties to a transaction, and other relevant information.
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• In addition, you should (where appropriate) keep your own notes on file when you contact clients and make enquiries about their arrangements. • These notes will help you explain your actions should questions about the client’s activities arise at a later date. This information supplements the client profile.
CDD-Report Suspicions
• Your AML CDD puts you in a position to spot potentially suspicious arrangements and transactions. • Your firm must have a procedure for submitting suspicious reports internally to your MLRO*. • It’s your MLRO’s job to decide whether to submit a Suspicion Activity Report (SAR*) to the authorities, and to handle any enquiries that might result. The MLRO will provide you feedback and updates. • Your obligation to report arises whenever you “know or suspect, or have reasonable grounds to know or suspect” money laundering. • The law interprets “reasonable grounds” by considering whether a reasonable person in your position, knowing what you knew, and seeing what you saw, would have suspected. • To help you decide, you should make routine enquires and check relevant information to which you routinely have access, to see whether there’s a legitimate explanation. If in doubt, you should seek advice from your MLRO. • If you see something suspicious, you must stop work on the business in question, and make an internal SAR immediately. • Stopping work and making your internal SAR discharges your personal obligations in full. Your MLRO will tell you when you can continue with the client’s business, or advise you on withdrawing from the engagement. • When a report is made do not forget your ‘tipping off’ responsibilities.
*MLRO - Money Laundering Reporting Officer, sometimes referred to as the Nominated Officer or Money Laundering Prevention Officer (MLPO). 7 *SAR = Suspicious Activity Report although some jurisdictions call these reports, STR’s = Suspicious Transaction Reports.
CONCERN & SUSPICION - You Sho SUSPICIOUS PEOPLE
PL E
Some clients display characteristics which in themselves give rise to suspicion. Examples include people who:
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• Are evasive when answering your due diligence enquiries, or provide information which proves difficult to verify or is inconsistent with other information you hold • Show little concern for the levels of charges and/or commissions they incur • Hold positions in the client organisation which seem unusually senior or unusually junior in relation to the business they are conducting with you • Asks you to keep information secret from their colleagues and/or from your own colleagues • Enjoys a lifestyle out of proportion to their likely salary
SUSPICIOUS TRANSACTIONS
Unexpected and/or unusual behaviour may cause suspicion. Examples include: • Repeated buying and selling of securities with apparent disregard to market conditions • Transactions of excessive value in relation to the size of the client organisation or the status of the individual conducting the business • Funding of purchases from a different account to that credited with settlements • Sums moving in and out of a client account in excess of actual requirements for the business conducted • Involvement of countries with which the client has no known connectionparticularly those representing high money laundering risk
REPORTING CONSIDERATIONS AND TRIGGERS INNOCENT INVOLVEMENT No red flag indicators apparent.
UNWITTING Basic CDD undertaken. Some red flags, but missed or significance misunderstood.
RED FLAGS IDENTIFIED THE TRIGGER
Business Process *SAR = Suspicious Activity Report although some jurisdictions call these reports, STR’s = Suspicious Transaction Reports. 8
Fig.5
ould always be on the lookout for: SUSPICIOUS ARRANGEMENTS
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Clients that make arrangements with no good explanation or commercial rationale, such as:
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• Conducting business through intermediaries, or subsidiary bodies such as offshore companies or trusts where the relationship is opaque • Making arrangements that seem more complicated than needed for the underlying business • Engaging in structured finance deals where the basic business realities are hard to determine • Taking on debt and then paying it off early without good business justification • Having no convincing reason for trading on the market in question, or for choosing your firm in particular
SUSPICIOUS PROPERTY
Even if you are not directly involved with a clients arrangements or property, you may observe that people: • Own expensive possessions such as luxury cars and residential property which seems disproportionate to what you know about their income and background • Promote securities backed by assets that you suspect have been overvalued, or of which you cannot determine the provenance • Seem able to attract investment funds that can’t be justified by the potential profitability of the business • Buy and sell assets which play no part in their business or about which they have no specialist knowledge • Hold assets in the name of another organization when it’s clear they are in control and enjoy the benefit
PROTECTION
PROTECTION ALERT & PROACTIVE Low level of suspicion = SAR* made where required and proceed with caution if appropriate or stop acting.
WILFULLY BLIND Further questions are not asked, isolated transaction is completed and often no SAR* is filed where required.
RISK
ALERT & PROACTIVE 2 Higher level of suspicion or knowledge - SAR* made where required and stop acting.
BEING CORRUPTED Wilful blindness persists for repeat instructions from the same client, the client’s associates or other matters with similar red flag indicators.
RISK
COMPLICIT Actual knowledge of the criminality in which they are involved.
RISK
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WHERE YOU RISK BREAKING THE LAW
PL E
Without having any intention of breaking ML/TF laws, there are three ways in which you could commit a criminal offence while carrying out your normal work.
You commit a criminal offence if you ASSIST…
...Someone to control criminal property when there are reasonable grounds to suspect they are the proceeds of crime or funds in support of terrorism.
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‘Assist; means providing any service or advice which helps acquire, NB.‘Assist; hold, hide or move property (e.g. money, property, other assets and/or arrangements). This offence can apply even when you had no deliberate intention of helping the criminally minded person (a money launderer).
You commit a criminal offence if you FAIL TO REPORT… ...When in the course of your work you have grounds to suspect that someone is handling the proceeds of a crime. NB. Claiming that you didn’t notice anything suspicious is not a defence, the question is “should you have noticed?”. This offence applies even if you haven’t given any form of assistance - the risk here is in the action or inaction. Not reporting to a MLRO when it can be shown you should have, could crystallise the offence.
You commit a criminal offence if you DISCLOSE… ...To a client, or any outside party, that they are the subject of a suspicion report or that they may be under investigation. NB. “Tipping off”, as this is known, can impede an investigation, and this constitutes a criminal offence. This doesn’t mean that it’s illegal to continue with routine client contact or ask questions, but you must take care not to reveal that a suspicion has arisen.
If you commit any of these offences, even inadvertently, you could face a criminal prosecution and the possibility of a prison sentence and/or unlimited fine. 10
HOW TO AVOID THESE OFFENCES
PL E
Avoiding the offences is straightforward and shown as follows:
Avoiding the offence of ASSISTING
If you are concerned about a client arrangement, do not proceed with the business in question, and report to the MLRO soonest.
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If you form a suspicion after a transaction has already gone through, report it to your MLRO immediately. Reporting as soon as you can gives you a defence in law against a charge of assisting or failing to report (see next point).
Avoiding the offence of FAILING TO REPORT
If you suspect, follow your firm’s internal reporting procedure and your own position is then secure. When you report, always remember to get an acknowledgment from the MLRO. You must report suspicions in the course of your work, whether you’ve provided any services or not to the suspected party. Making a report to your MLRO avoids this offence.
Avoiding the offence of TIPPING OFF If you are aware that a client is under suspicion, you must never reveal this to the client or anyone outside your firm. You should seek the advice of your MLRO, when dealing with a client subject to a suspicious report. Making the client aware of the suspicion is illegal and known as ‘tipping off’.
Your firm must have Policy & Procedures (P&P) on the above and if you act professionally and follow these P&Ps, you will avoid committing these offences, and benefit from the protection of the law. 11
SUSPICIOUS REPORTS - INTERNAL TO EXTERNAL WHAT HAPPENS WHEN A REPORT IS MADE? YOU
3
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Investigation
Suspicion report & acknowledgement
5
Consent to continue
INTERNAL
1
2
SA M
3
6
Official disclosure
COURT ORDER
6
7
Consent to continue
5
EXTERNAL
BEWARE OF TIPPING OFF
YOUR MLRO
4
REPORTING AGENCY EG. FIS/NCA
THE COURT
6
4
7
INVESTIGATING AGENCIES • Police • Customs • Other agencies eg. Finance Intelligence Service (FIS) and National Crime Agency (NCA)
12
1
2
3
You make an internal report to your MLRO and put any pending business on hold and wait of further guidance from MLRO. All reports must be acknowledged.
Your MLRO gathers all available information and decides whether to make a formal disclosure to the authorities. Your MLRO may need your assistance with any investigation.
If, your MLRO makes a formal disclosure to the FIS / NCA they will request consent to continue with any pending transaction.
4
5
6
7
The FIS / NCA analyses the report and checks for related information, prior to conducting discreet enquiries with other investigating agencies as appropriate.
The FIS / NCA usually gives consent to continue with any pending transaction. If consent is refused your MLRO receives instructions from the investigation agency.
If the investigators need further information, they serve an order on your firm to provide the record they require.
If a prosecution ensues all contact with the police or investigating agency will be handled by your MLRO
Fig.6
MANAGING AML RISK THROUGHOUT AN ENTERPRISE-WIDE AML COMPLIANCE PROCESS
PL E
As regulators put more pressure on financial institutions to ensure strict compliance, regulated firms must be able to show that they are taking reasonable, adequate and effective measures. The consistent application of compliance standards across departments and jurisdictions is an essential requirement. In addition to the regulatory risk, inadequate enterprise-wide compliance may also expose a financial institution to reputational and commercial risk. AML compliance extends across the entire life cycle of a client, from initial -boarding at account opening, to ongoing monitoring of transactional and nonon-boarding transactional activity, to periodic and risk reviews of the existing client base.
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Achieving consistency in AML compliance involves standardising operations, technology systems, and perhaps most essentially the use of ‘Watch List Data’ (WLD). The reliance on data means that effective AML compliance relies on clean, wellmanaged, and optimised WLD and client records. AML and WLD screening has over the past several years become one of the primary hotspots and regulatory requirements in AML compliance.
ENTERPRISE-WIDE WATCHLIST MANAGEMENT PLATFORM WATCHLIST DATA OFAC
HMT
EU
UN
HOME COUNTRY LISTS
INTERNAL LISTS
Watchlist Consolidation
Watchlist Maintenance
(INC PEPS)
Data Re-purposing
Watchlist Distribution System = could be outsourced to a managed service such as Comsure iTrack Risk and iTrack Sanctions
ID&V / CDD PEOPLE / COUNTRY / ACTIVITY Fig.7
TRANSACTION MONITORING
TRADE FINANCE
SANCTIONS
COMPLIANCE OVERSIGHT & CONTROL
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AML COMPLIANCE IN THE FRONT, MIDDLE AND BACK OFFICE WHERE DO YOU FIT IN?
FRONT OFFICE
PL E
• AML compliance focuses on knowing your customer and their business activities (KYCB), through Client Due Diligence and risk profiling. • AML compliance in the front office is typically the responsibility of the line of business, for example client relationship officers / managers.
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MIDDLE OFFICE
• AML compliance is largely concerned with ensuring external counterparties to transactions and other arrangements are safe to do business with. • This includes the critical area of sanctions compliance for example monitoring international payments to ensure counterparties are not on any sanctions list.
BACK OFFICE
• AML compliance has responsibility for the ongoing monitoring of account activity in order to detect suspicious behaviour that may indicate money laundering. • Back office analysts also conduct independent periodic and risk reviews of the customer base.
FRONT OFFICE
MIDDLE OFFICE
BACK OFFICE
ID&V / CDD*
Sanctions
Transaction Monitoring
Risk Scoring
Counterparties
Customer Periodic Review
Sanctions
Correspondent Banks
PEP & other high risk
PEP & other high risk
Look-backs Batch Screen All data
< - Watchlist / Enhanced Databases i.e. iTrack - > * Identification & Verification / Customer Due Diligence
Fig.8
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AML SYSTEMS AML Compliance requires technology and data support operations and include; Processes for; • On-boarding and identity verification systems at account opening • Transaction monitoring • Watchlist and sanctions filtering systems • Ongoing account activity and customer review
2
Quality compliance data is integral to; • AML compliance processes • Compliance data is needed across the entire cycle of AML compliance • Watchlists and enhanced compliance databases should be used across every stage of AML compliance including; » Initial account opening » Ongoing monitoring of transactions/arrangements » Periodic review of the customer base » Screening international payments
3
Effective case management systems are needed to: • Enable compliance analysts to investigate • Report on suspicious activity • Provide robust historical auditable data
SA M
PL E
1
CYCLICAL RISK BASED AML MANAGEMENT
AML policy & procedures review
AML PROGRAMME PLAN
AML organisation design
AML training
AML SURVEILLANCE
Annual AML risk assessment
AML REPORTING
EXTERNAL
External influences
FATF + other bodies
Regulations and legislation
Pressure from regulators
Global trends + cases
Fig.9
15
Restart
BUSINESS
CONTROL
Time AML risk assessment & strategy
BOARD RESPONSIBILITIES & ACCOUNTABILITIES The board (controlling mind) MUST ensure it has a control framework through it’s; Business Systems
•
Business Controls
•
Policies and Procedures
•
Testing and reporting on the above
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•
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In doing so, the following components must be evident;
STRATEGY
IMPLEMENTATION
MONITORING
REPORTING
Notify the Regulator immediately in writing of any material failures Consider barriers that exist that will prevent the operation of effective systems and controls
Business Risk Assessment (“BRA”)
Board responsibilities
Assess effectiveness and compliance & take prompt action to address deficiencies
Demonstrate existence of systems & controls Document systems & controls and clearly apportion responsibilities
Fig.10
16
Formal strategy based on BRA
WHAT YOU RISK IF YOU FAIL IN YOUR OBLIGATIONS CONSEQUENCE OF FAILURE Assisting a money launderer, failing to report suspicions, and tipping off are all criminal offences, as well as failing to meet your obligations by not following your P+P’s could, in the worst case, lead to you personally facing prosecution and a prison sentence and/or fine.
•
You and your firm can face fines and even the removal of authorisation to do business. Directors and other responsible persons and employees can also be prosecuted and fined and/or imprisoned.
•
Even if it doesn’t go that far, involvement in a money laundering episode carries serious risks for you and for your firm through reputational damage.
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PL E
•
DAMAGE TO REPUTATION •
If your firm becomes implicated in a money laundering episode, the publicity can be very damaging.
•
All firms and institutions need to protect their good reputation as well as the jurisdictions where you are based.
DAMAGE TO CAREER •
If you personally fall short on money laundering prevention and detection, whether deliberately or negligently, you could find yourself subject to criminal regulatory and/or internal disciplinary procedures.
•
Whatever the outcome, your career prospects are likely to be adversely affected.
•
The regulator could stop you working in the Finance Industry.
HOW COMPLIANCE GIVES YOU PROTECTION 1.
When you act correctly, following your anti-money laundering procedures conscientiously, your position is protected.
2.
If your firm was to be implicated in a money laundering incident, you would need to show that you acted correctly according to your firm’s policy and procedures.
3.
If you can show you are compliant, you are protected by the law and your personal standing is secure.
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YOUR PERSONAL COMPLIANCE BOOKLET - KEY FACTS
PL E
1. This booklet forms part of any firm’s anti-money laundering compliance programme, which must include ongoing training for all relevant staff. 2. If you’ve received anti-money laundering training on previous occasions, the material in this booklet will mostly be familiar to you.
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3. It’s the role of the board and the person in your firm responsible for anti-money laundering compliance, to monitor changes in the law, regulations and guidance, and ensure your policy and procedures are kept up to date. 4. You will see that money laundering prevention is an important topic, of which this booklet gives only a summary. 5. You should look regularly into your own responsibilities on money laundering prevention in more depth by reading your company’s policy and procedures. Please remember if you notice any deficiencies you have a responsibility to highlight this to an appropriate officer. 6. Whether or not there are recent changes that affect you personally, this booklet enables you to refresh your awareness of the topic. 7. Your continuing alertness is essential to protect your own position and that of your firm and your jurisdiction.
USE THIS CHECKLIST TO CONFIRM THAT YOU HAVE UNDERSTOOD THE IMPORTANT MESSAGES CONTAINED IN THIS BOOKLET
BOOKLET RISK WARNING Please note this booklet is based on international standards and some matters contained within may differ from jurisdiction to jurisdiction. You should always check your firms policies and procedures and/or refer questions to your MLRO.
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YOUR COMPLIANCE CHECKLIST
Name
PHOTOCOPY THIS PAGE AND SEND TO YOUR MLRO: DECLARATION I can confirm that I have read my Comsure 2014/15 personal guide on the prevention and detection of financial crime and in doing so wish to make the following confirmations
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The money laundering process I see how the benefit from crime can go through stages in the money laundering process which may begin as cash or a fraudulent instruction which ends up as apparent legitimate wealth.
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Criminal and terrorist money I am aware that terrorists also seek to hide and disguise their activity and/or money and that everyone working in financial services must take steps to prevent and detect the criminality. Sanction Risk I am aware of international sanctions and breaching them may lead to criminal and or regulatory sanction The legal and regulatory environment I understand that the laws and regulations governing me and my firm are part of worldwide measures to combat crime and terrorism. Predicate offences I see that money laundering risk in general terms can be seen as an ALL CRIME risk and can include such activities as tax evasion, bribery, insider dealing as well as the more popular interpretations such as drug dealing. Compliance obligations I know the importance of Client Due Diligence (CDD), the need to keep records, and the requirement to report suspicions using my firm’s procedure. Risk indicators I appreciate the need to be alert for people, transactions, arrangements and assets which could be suspicious. Operations, systems and procedures I understand what is needed to manage the risk of being connected to criminality, terrorism and or sanctions through systems, controls, policies and procedures. What happens following a suspicion report I know that I must put business on hold as soon as a suspicion arises, and await instructions from the MLRO before continuing. Failing to meet your obligations I am aware of the need to avoid committing the money laundering offences of assisting, failing to report suspicions, and tipping off. Furthermore, I realise that if I fail in my obligations I can face disciplinary action, regulatory sanction and/or legal action. Compliance affords the procedure I understand that complying with my firms Policy and Procedures affords me the protection from legal and regulatory liability. Signature
Date
Please indicate in the checkbox your confirmation of each statement with a (Yes I agree) or X (No I do not agree).
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TRAINING Comsure provides practical training for a wide range of risk and compliance. Our workshops deliver significant benefits to your organisation and key personnel. Our training presenters are industry practitioners (financial, accounting, legal, tax, HR etc) and have many years of experience and subject matter knowledge in operational risk management, corporate governance and regulatory compliance. The objective of the Comsure workshop is to share expertise to the widest audience possible through practical training workshops. Comsure covers the following areas of study:
• • •
Compliance AML Corporate Governance
RISK WARNING This booklet is designed to help in maintaining your anti-money laundering training regime, however it should be noted this booklet is based on international standards and some matters contained within may differ from jurisdiction to jurisdiction. In providing a AML guide the publishers have made every reasonable efforts to ensure that the contents accurately reflect the generality of the laws and regulations in affect at the time of publication, but you should NOT view this booklet as a source of legal opinion or a safe harbour to an any particular rule or regulation in your jurisdiction or business.
Comsure Group | 1 Bond Street | St. Helier | Jersey JE2 3NP info@comsuregroup.com | www.comsuregroup.com T: +44 (0) 1534 626841 | F: +44 (0) 1534 626842
Copyright ©2014 Comsure Compliance Limited The content of this booklet are copyright in their entirety. You may not copy, transcribe, or reproduce any part of this booklet by any means or in any media without the written authorisation of the copyright holder. This specifically prohibits photocopying, scanning and storing in digital format and copying parts of the text for use in other contexts. Copies of this booklet are available from Comsure Compliance Limited – CDD@COMSUREGROUP.COM