Money Laundering & Terrorist Financing Regulations Refresher PDF

# Money Laundering and Terrorist Financing Regulations Refresher ## January 2025 ## Key Personnel ### Key Personnel and Contacts - **Compliance Officer:** Malcolm Prescott - **Money Laundering Reporting Officer (MLRO):** Lindsay Braddick - **Deputy Nominated Officer:** Andrea Merritt - **HMRC Anti-...

# Money Laundering and Terrorist Financing Regulations Refresher ## January 2025 ## Key Personnel ### Key Personnel and Contacts - **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 or 'tipping off' 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. ## Examples of Money Laundering in Estate Agency - **Using Property** - Buying property with proceeds from crime, then letting or selling the property to generate a seemingly legitimate source of money. - **Complex Structures** - Using multiple companies and bank accounts to disguise transactions. - **Fraud** - Fraud by sellers, buyers, or mortgage brokers. - **Terrorist Financing** - Involves dealing with money or property suspected to be used for terrorism. ## Who is a Beneficial Owner? - Every person named on the title deed, or executors in cases of probate. - Any person who has shares or voting rights of 25% or more in a charity. - Any person who owns, controls or benefits 25% or more from a company or trust fund. ## Customer Due Diligence - The process of identifying and verifying customers before entering a business relationship. - **Beneficial Owners** - Identify all of the beneficial owners of a property before entering a business relationship. - **Verification Process** - Verify all buyers who have had an offer accepted, and will become the new beneficial owners - You have until the point of contracts being exchanged to verify the buyer. If you cannot verify who they are, do not continue with the transaction, and consider making a suspicious activity report. ## Who is Considered High Risk? If the risk assessment has scored a person as high risk, perform a high risk Landmark AML check, rather than a normal risk check. ### High-Risk Factors - Includes clients you have not met in person, large cash transactions, clients from high-risk countries, use of false documents, transactions over £1 million, or overly complex or unusually large transactions. ### Politically Exposed Persons (PEP) - Heads of state, ministers and deputy or assistant ministers, high ranking officers in the armed forces, high ranking MPs (not local council), members of supreme courts, members of courts of auditors or boards of banks. ## Identification Requirements ### Normal Risk - Full name, date of birth, current address, previous address if at current address for less than 6 months. ### High Risk Checks - At least 1 (but ideally 2) of the following: Passport, driver's license, armed forces card, national insurance card. ### If Landmark check fails address match - At least 1 recent copy of the following: Driver's license, utility bill, bank statement, mortgage statement, HMRC tax demand, tax credit, tax notification, council rent card, council tenancy agreement, state pension or benefits book/notification letter. ## Suspicious Activity Reporting (SAR) - Suspicious Activity Report (SAR) - Report that alerts law enforcement that a client's activity is in some way suspicious ### 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 - Confirm property ownership via Title Deed check, perform risk assessments, perform the relevant Landmark check. ### Lettings Staff - Notify Andrea Merritt of properties with a monthly rental over £8,500, or if you are expecting payments in excess of £20,000 in a single transaction. ### All Staff - Complete AML training, respond to AML requests promptly.