AML

Question 1

What is money laundering?

Answer 1

Money laundering = when proceeds of criminal activities are disguised or converted and then realised as legitimate assets.

Question 2

What is Colliers money laundering reporting policy?

Answer 2

In-line with RICS Professional Standard on Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
If you suspect, report to Money Laundering Reporting Officer (Zoe Harris) – they will engage with authorities (National Crime Agency).

Question 3

Who is Colliers money laundering reporting officer?

Answer 3

Zoe Harris

Question 4

What are the key provisions of The Money Laundering, Terrorist Financing Transfer of Funds Regulations (2017)?

Answer 4

1. Written ML & TF assessment
2. Implement systems to address risks
3. Adopt internal controls
4. Staff training
5. Comply with due diligence requirements
6. Comply with PEPs requirements
7. AML checks undertaken of proposed purchasers
8. Additional high-risk factors for enhanced DD

Other requirements:
10,000 euros limit for cash
Appoint a senior member to control compliance
Nominated Money Laundering Reporting Officer – report suspicions with SAR (suspicious activity records) to the National Crime Agency
Maintain records for min of 5 years
Report to Companies House of any discrepancies

Question 5

What are estate agents’ legal obligations in relation to Money Laundering?

Answer 5

Individuals/businesses need to be approved and remain registered by HMRC in order to trade.
CDD checks – will need to be registered with HMRC to trade
EDD checks are undertaken if red flags occur

Question 6

What are the penalties for a failure to comply with AML?

Answer 6

Money Laundering assistance = up to 14 years and unlimited fine
Tipping off a suspect = 5 years and unlimited fine
Report to the National Crime Agency

Question 7

What must a firm do under the money laundering regulations?

Answer 7

Staff training
Adopt internal controls
Comply with customer DD
Limit of 10,000 euros on the acceptance of cash
Must register with HMRC on an annual basis.

Question 8

What What government sanctions are there?

Answer 8

Sanctions list (HM Treasury’s Office of Financial Sanctions Implementation (OFSI))
Proceeds of Crime Act (2002)
Economic Crime Act (2022)

Question 9

What is the Economic Crime Act (2002)?

Answer 9

The Economic Crime (Transparency and Enforcement) Act 2022 is a significant piece of UK legislation aimed at tackling illicit finance, particularly in the property market. It was fast-tracked through Parliament in response to the Russian invasion of Ukraine, amid concerns about dirty money flowing through the UK. Key objectives:

•	Increase transparency of overseas ownership of UK property.
•	Strengthen powers to seize criminal assets.
•	Improve the enforcement of sanctions.

Additional measures of beneficial overseas owners of property in the UK.
Strengthens investigation powers and UWOs (unexplained wealth orders) - Easier prosecution of those involved.

Question 10

What is the Proceeds of Crime Act (2002)?

Answer 10

The Proceeds of Crime Act 2002 is UK legislation aimed at preventing criminals from benefiting from the proceeds of crime. It creates offences around money laundering and places duties on professionals, including surveyors and estate agents, to report suspicious activity.

Under the Act, if I suspect that funds or property are derived from criminal activity, I have a legal obligation to report this through a Suspicious Activity Report, usually to my firm’s Money Laundering Reporting Officer or directly to the National Crime Agency.

It is also an offence to fail to report suspicion or to ‘tip off’ a client that a report has been made. The Act gives authorities powers to confiscate or recover assets suspected to come from unlawful conduct.

In practice, this means carrying out proper client due diligence, such as verifying identity and source of funds, and remaining vigilant to unusual or high-risk transactions.

Question 11

Has the Ukraine conflict changed government and your actions in relation to AML/terrorist financing?

Answer 11

UK government has issued wider sanctions in a March 2022 update.
Firms/personal actions:
Consider sanctions list
Better eye on red flags
Checking individual clients against HM Treasurys ‘consolidated list’
If client is a match = contact Office for Financial Sanctions Implementation (OFSI)

Question 12

How would you carry out due diligence on a client?

Answer 12

Client proof of name, address
Directors names
3 years of audited accounts
Speak with in house AML team to further EDD checks if required.

Question 13

What did your training for Client Due Diligence/AML include?

Answer 13

How to spot red flags
Where to search for company director information
How to assess company accounts, although I am not qualified to provide financial advice

Question 14

What is a red flag of money laundering?

Answer 14

If a party:
Requests to pay in cash
Withholds identity documents
Unusual features, such as unexpected urgency or unusual behaviour or unusual currencies.

Question 15

What are the penalties for assisting Money Laundering and failing to tip off?

Answer 15

For assisting in Money Laundering – maximum 14 years imprisonment and/or unlimited fine.
For tipping off – maximum 5 years imprisonment and/or unlimited fine.

Question 16

What are forms of identity do you need for carrying out CDD?

Answer 16

Passport
Driving Licence
Bank Statement for POA

Question 17

Why do we carry out CDD?

Answer 17

To protect both ourselves, consumers and the public against corruption, money laundering and other forms of the financial misconduct such as terror financing.

Question 18

Why do we carry out CDD?

Answer 18

To protect both ourselves, consumers and the public against corruption, money laundering and other forms of the financial misconduct such as terror financing.

Question 19

When would you not carry out CDD?

Answer 19

Would always carry these out
Red flag – go straight to Enhanced DD

Question 20

When do you carry out counterparty CDD?

Answer 20

When undertaking EDD
Complying with AML checks

Question 21

Who is responsible for carrying out CDD?

Answer 21

Company on the instruction (agent)

Question 22

What regulations and legislation covers CDD?

Answer 22

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017)

RICS Professional Standard: Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)

Question 23

What money laundering regulations or legislation are you aware of?

Answer 23

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017

Sanctions and Anti-Money Laundering 2018

Update: RICS Anti-Money Laundering Sanctions 2022
Proceeds of Crime Act 2002