The law – in the form of the new Money Laundering Regulations 2007 – now expects practitioners and staff working for accountancy and financial firms to be able to identify any suspicious activity to the level of a ‘reasonable person’, and to make the appropriate report to law enforcement. It also places a personal criminal liability on given individuals if they fail to do so.
Indeed, the 2007 Regulations also threaten to impose further criminal prosecutions for any proven failure to:
– ‘know the client’;
– adopt a risk-based approach;
– apply enhanced customer due diligence for those cases posing a higher risk;
– instigate internal systems for reporting, regular staff training and record keeping;
– register for compliance monitoring.
There is an obligation under the law to follow the Money Laundering Regulations and visibly demonstrate to a designated supervisor that actions taken are consummate with the risks assessed.
If you are the ‘nominated person’ and/or the MLRO, the personal liability rests with you to ensure that your staff understand fully their obligations under the new Money Laundering Regulations, and that they know how to spot ‘suspicious’ activity before being capable of demonstrating this to an appropriate monitoring body.
Simply making a photocopy of a couple of identification documents is now not an option in a large percentage of cases. In fact, such a minimalist approach to the Money Laundering Regulations could leave many wide open to legal proceedings.
Benefits of attendance at the seminar
Attendance will first and foremost offer practitioners in the financial and accountancy world an understanding of the impact current fraud and money laundering legislation might have on both individuals and companies. Delegates will be able to:
– understand their role within the UK’s anti-money laundering regime;
– find out about the practical solutions and tools available to the MLRO in terms of being able to fulfil their role;
– harbour a greater understanding of the role of SOCA and other law enforcement agencies;
– understand the requirement for a risk-based approach to anti-money laundering initiatives;
– develop and then introduce appropriate risk-based systems and controls;
– introduce recording systems for risk assessments and risk-based client due diligence;
– know how to deal with both pre- and post-event suspicion reports;
– decide what to do should the firm receive a Court order for a law enforcement investigation.
Delegates can also gain an understanding of how the professional may be targeted by money launderers, the offences professionals may unwittingly commit (and the penalties that apply), why the Money Laundering Regulations are the professional’s ‘best friend’ and what members of staff must do if and when they become suspicious about a transaction.
Seminar dates and locations
The Institute of Financial Accountants’ seminars concentrating on the 2007 Money Laundering Regulations (and the Proceeds of Crime Act) run in Glasgow (26 March), Edinburgh (27 March), Cardiff (9 April), Bournemouth (23 April), Reading (24 April), Luton (7 May), central London (8 May), Bury (14 May), Sheffield (15 May), Newcastle (27 May), Peterborough (11 June), Birmingham (12 June) and Liverpool (25 June).
For further details log on at: www.ifa.org.uk
The Institute of Financial Accountants (IFA) was founded in 1916, and serves as one of the largest professional accountancy bodies in the UK. The IFA boasts more than 8,000 members, representing both them and students in more than 80 countries worldwide. In addition, the organisation provides a recognised qualification and Continuing Professional Development (CPD) for those who wish to become an incorporated financial accountant.