What is money laundering?
The process of exchanging criminally obtained money or other assets for clean money or other assets with no obviously linked to the criminal origins
What are the three stages of money laundering?
Placement
Layering
Integration
What is placement?
Where cash obtained through criminal activity is first place into the financial system
What is layering?
Whether the legal cash is disguised by passing it through complex transactions making it difficult to trace
What is integration?
Clear tank fan back into the legitimate economy and is now clean
What is terrorist financing?
Fundraising processing or dealing with property or facilitating someone else to do so when intending knowing or expecting or having reasonable course to expect that it is intended for the purpose of terrorism
What is terrorist property?
Is money your property likely to be used for terrorist purposes all the proceeds of commissioning or carrying out terrorist act?
What is a conviction of money laundering or terrorist financing?
Punishable by up to 14 years in prison and unlimited fine
What are the money laundering offences?
Acquisition
Concealing
Arrangement
Failure to disclose
Tipping off
What is acquisition?
Acquiring possession or use of criminal property
What is concealing?
Concealing or disguising or transferring criminal property or moving it from the country
What is arrangement?
Being involved in an arrangement facilitating the acquisition possession or use of criminal property
What is failure to disclose?
Knowledge of suspicion of money laundering
What can a member be charged with if they do not report known or suspected money laundering?
Failure to report. Confidentiality is not a defence.
At a minimum of an anti-money launching program should incorporate
Money laundering and terrorists financing risk assessment
Implementation of systems policies controls and procedures that effectively manage the risk at the firm is exposed in relation to money laundering
Compliance with customer due diligence enhance due diligence and simplified due diligence
Enhance record keeping in data protection systems policies and procedures
What’s our examples of implementing systems policies and controls?
Appointment of money laundering reporting officer
Establishing internal reporting procedures to the MLRO
Procedures for reporting of suspicion transactions to the Fiu
Communication and training of all staff in the main requirements of the legislation
Independent audit function to assess adequacy
What is an example of money laundering suspicion?
Unusual large cash deposit
Frequent exchanges of cash into other currencies
Overseas business arrangements with no clear business purpose
What does a SAR identify?
Suspect’s name address date of birth and nationality
Any identification or references seen
Nature of the activities given rise to suspicion
Any other information that may be relevant
What happens if there is no MLRO within the organisation?
Then the SAR goes direct me to the FIU
What is protected disclosure?
Any report raising a money laundry suspicion is a protected disclosure. This means that the person is protected against allegations of breach of confidentiality.
What should a person do who realises that they may have engaged or be engaged in money laundering?
Make it known as an authorised disclosure to NCA
What is tipping off?
Telling the money laundering offender that the authorities have been informed or disclose anything that might prejudice an investigation
What is the penalty for tipping off?
This offence is a maximum of two years imprisonment or limited fine
Many laundering regulation state that customer due diligence must be applied in the following:
When establishing a new business relationship
When carrying out an occasional transaction involving 8361 or more
Whether is suspicion of money laundering or terrorist financing
Whether doubts about previously obtained customer identification information
At appropriate times to existing clients on risk sensitive basis
