Podcast
Questions and Answers
Which of the following is NOT a high-risk factor?
Which of the following is NOT a high-risk factor?
Which of the following individuals would be considered a Politically Exposed Person (PEP)?
Which of the following individuals would be considered a Politically Exposed Person (PEP)?
When conducting a high-risk identification check, what documentation is required?
When conducting a high-risk identification check, what documentation is required?
What is the procedure for reporting suspicious activity?
What is the procedure for reporting suspicious activity?
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As a member of the lettings team, which of the following situations require you to notify Andrea Merritt?
As a member of the lettings team, which of the following situations require you to notify Andrea Merritt?
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What is the name of the governing body that has the power to freeze terrorist assets?
What is the name of the governing body that has the power to freeze terrorist assets?
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What is the name of the act that ensures the security of dangerous substances from terrorist use?
What is the name of the act that ensures the security of dangerous substances from terrorist use?
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Which of the following scenarios could be considered a potential example of money laundering in estate agency?
Which of the following scenarios could be considered a potential example of money laundering in estate agency?
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Which of the following individuals is NOT considered a 'beneficial owner', as defined in the text?
Which of the following individuals is NOT considered a 'beneficial owner', as defined in the text?
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What is the latest deadline for verifying the identity of a buyer who has had an offer accepted on a property?
What is the latest deadline for verifying the identity of a buyer who has had an offer accepted on a property?
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Why is it important to identify and verify all beneficial owners of a property?
Why is it important to identify and verify all beneficial owners of a property?
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Which of the following acts makes it an offense to fail to report suspicious activity related to money laundering?
Which of the following acts makes it an offense to fail to report suspicious activity related to money laundering?
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Based on the information provided, who is responsible for conducting a risk assessment and determining if a person should be considered high-risk?
Based on the information provided, who is responsible for conducting a risk assessment and determining if a person should be considered high-risk?
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Study Notes
Money Laundering and Terrorist Financing Regulations Refresher
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Key Personnel:
- Compliance Officer: Malcolm Prescott
- Money Laundering Reporting Officer (MLRO): Lindsay Braddick
- Deputy Nominated Officer: Andrea Merritt
- HMRC Anti-Money Laundering Registration Number: 12739673
Important Laws
- Proceeds of Crime Act 2002: Failure to report suspicious activity is an offense.
- Anti-Terrorism, Crime & Security Act 2001: Ensures the security of dangerous substances from terrorist use.
- Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2007: Extends powers to seek information, recover proceeds of crime and combat terrorism financing.
- Counter Terrorism Act 2008, Schedule 7: Gives HM Treasury power to freeze terrorist assets.
- National Crime Agency (NCA): Responsible for investigating and tackling money laundering and terrorist financing.
Examples of Money Laundering in Estate Agency
- Using Property: Buying property with criminal proceeds and then letting or selling it to generate legitimate income.
- Complex Structures: Using multiple companies and bank accounts to hide transactions.
- Fraud: Fraudulent activities by sellers, buyers or mortgage brokers.
- Terrorist Financing: Dealing with money/property suspected of being used for terrorism.
Who is a Beneficial Owner?
- Title Deed/Executors: Every person named on the title deed, or executors in cases of probate.
- Charity: Any person with 25% or more shares or voting rights in a charity.
- Company/Trust Fund: Any person owning, controlling or benefiting from 25% or more of a company or trust fund.
Customer Due Diligence
- Beneficial Owners: Identify all beneficial owners before entering a business relationship.
- Verification Process: Verify all buyers before contracts are exchanged. If verification is not possible, the transaction should not proceed, and a suspicious activity report (SAR) should be considered.
Who is Considered High Risk?
- High-Risk Factors: Clients not met in person, large cash transactions, high-risk countries, false documents, transactions over £1 million, or overly complex or unusually large transactions.
- Politically Exposed Persons (PEPs): Heads of state, ministers, high-ranking officers in armed forces, MPs (non-local council), members of supreme courts, courts of auditors or boards of banks.
Identification Requirements
- Normal Risk: Full name, date of birth, current address, and previous address (if less than 6 months at current address).
- High Risk: Passport, driver's license, armed forces card, or national insurance card. If a Landmark check fails to match an address, additional documentation (e.g., utility bills, bank statements) should be obtained.
Suspicious Activity Reporting (SAR)
- Criteria: Consider making a SAR if a person meets three or more high-risk factors.
- Procedure: Discuss with Andrea Merritt, report internally to Lindsay Braddick.
- Confidentiality: Do not tip off the client; it is a criminal offense.
Responsibilities of Webbers' Staff
- Sales Staff: Verify property ownership, perform risk assessments and Landmark checks.
- Lettings Staff: Notify Andrea Merritt for properties with monthly rental over £8,500, or payments exceeding £20,000 in a single transaction.
- All Staff: Complete AML training and respond promptly to AML requests.
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Description
This quiz provides an overview of key personnel, important laws, and regulations related to money laundering and terrorist financing. Test your knowledge on compliance practices, legislative frameworks, and case examples specific to estate agency. Understand the implications of these regulations for your organization.
