Here are four commonly asked questions in relation to anti-money laundering procedures.<\/p>\n
Knowledge is:<\/strong> Suspicion is: <\/strong> There can be no hard and fast rules on how to recognise money laundering. It is important for all individuals to be alert to this issue and to apply their professional judgement and expertise \u2013 or if they lack expertise, to seek appropriate advice preferably from the Money Laundering Reporting Officer (MLRO). Whether to make a report is very much a subjective decision. You have to base this on the information you have available at the time and use your professional experience.<\/p>\n When the Serious Organised Crime Agency (SOCA) receive a report from a MLRO that involves accounting or tax issues it will be passed to a special intelligence unit within HMRC. This unit will consider whether it is suitable for investigation towards criminal prosecution and failing that then the report will either be considered for enquiry under a Civil Code of Practice or be referred to HMRC\u2019s Centre for Research and Intelligence in Llanishen, Cardiff.<\/p>\n Where it is considered appropriate to pass intelligence on to relevant staff in taxpayer-facing offices neither the fact that the intelligence has come from SOCA, nor the identity of the original source of the intelligence, is disclosed.<\/p>\n Finally, it is important that all reports are considered for submission to SOCA and there is no de minimis limit. The reason for this is simply to enable SOCA (and HMRC thereafter) to accumulate reports from a variety of sources to support proceedings. <\/p>\n A report should be made if, during the course of your work, you have knowledge or suspicion that a money laundering offence has taken place.<\/p>\n The important part here is \u2018during the course of your work\u2019. Therefore provided you have sufficient information to make a report then this should be done. If you decide not to make a report to SOCA then you should still document your decisions for not doing so as with other clients. <\/p>\n It is the MLRO\u2019s responsibility to make a report to SOCA not the firms. The MLRO is personally liable if reports of valid money laundering suspicions received from members of staff are not reported to SOCA.<\/p>\n
\n\u2022 actual knowledge
\n\u2022 shutting your mind to the obvious
\n\u2022 deliberately refraining from making enquiries (although bear in mind the offence of Tipping-Off)
\n\u2022 deliberating deterring a person from making enquiries, the content of which one might not care to know
\n\u2022 knowledge of circumstances which would indicate the facts to an honest and reasonable person<\/p>\n
\n\u2022 not defined in legislation, but is more definite than speculation but less than proof or knowledge \u2022 must be based on some evidence even if that evidence is tentative
\n\u2022 it is therefore subjective. It should be highlighted that generalised assumptions, such as \u2018not all cash takings are ever declared in cash businesses\u2019 would constitute speculation and not suspicion and are therefore not reportable unless there is a specific concern. <\/p>\n2. What happens once an external report is made to SOCA?<\/h3>\n
3. If at an initial client meeting (.i.e. before I formally act for the client) I have suspicions that a money laundering offence has taken place should I make a report?<\/h3>\n
4. If the MLRO doesn\u2019t make a report to SOCA when they should have, who is liable \u2013 the firm or the MLRO?<\/h3>\n
Anti-Money Laundering Online Training<\/h2>\n