ANTI MONEY LAUNDERING POLICY

Transcription

1 What is mney laundering? ANTI MONEY LAUNDERING POLICY 1. Mney laundering is where mney btained, as a result f a crime, is used t pay fr services r gds. Althugh the term mney laundering is usually assciated with rganised criminal activities, it can include a suspicin that smene yu knw, r knw f, is benefiting financially frm dishnest activities, e.g. nn-payment f incme tax. 2. Peple invlved in handling criminal prperty lk fr ways t secure and safeguard the prceeds f their criminal activities. Althugh ther ways exist, cash is the mainstay f criminal transactins, being the mst reliable and flexible, and having little r n audit trail. 3. Criminals ften transprt cash ut f the UK using curiers, usually thrugh airprts, t pay int banks verseas. They use this mney t purchase prperty abrad, r t pay t their families. 4. In the UK, the mst ppular methd f mney laundering is thught t be the purchase f prperty, fllwed by investment in frnt cmpanies, r high cash turnver businesses(ften legitimate businesses), r by funding a lifestyle. After prperty, the mst significant assets bught by criminals are jewellery, artwrk, antiques, cars and bats. 5. Criminals invest cash in financial prducts with a view t selling them quickly (if necessary at a lss). Criminals als use trusts t launder mney because f their secretive nature and flexibility, ften using frnt cmpanies t hide identities. Gambling large amunts at relatively lw dds is als used, since winnings are usually received in the frm f cheque payments. 6. Criminals use layering t cnfuse the audit trail. This invlves passing transactins thrugh several stages, ften eventually banking the prceeds f business incme and transferring the mney verseas t a cuntry whse regulatry regime is weaker. 7. Examples f mney laundering can include: - large cash payments; - asking fr cash refunds n credit card payments; r - verpaying bills, e.g. cuncil tax r rates, then asking fr cash refunds. 8. Appendix A details examples f pssible situatins invlving expsure t mney laundering and the prceeds f crime. Appendix B lists the current Mney Laundering legislatin. What are the main mney laundering ffences? 9. There are three main ffences: - Cncealing: knwing r suspecting a case f mney laundering, but cncealing r disguising its existence. - Arranging: becming invlved in an arrangement t launder mney, r assisting in mney laundering. - Acquisitin, use r pssessin: benefiting frm mney laundering by acquiring, using r pssessing the prperty cncerned. 10. There is als a third party ffence failure t disclse ne f the three main ffences detailed abve.

2 11. Nne f these ffences are cmmitted if: - the persns invlved did nt knw r suspect that they were dealing with the prceeds f crime; r - a reprt f the suspicius activity is made prmptly t the Mney Laundering Reprting Officer (MLRO). What are the penalties? 12. Mney laundering ffences may be tried at a magistrate s curt r in the Crwn Curt, depending n the severity f the suspected ffence. Trials at a magistrate s curt can attract fines f up t 5,000, up t 6 mnths in prisn, r bth. 13. In a Crwn Curt, fines are unlimited and with pssible prisn sentences f between tw t 14 years. What is Slihull MBC s plicy n mney laundering? 14. All rganisatins, including the Cuncil, must reprt any mney laundering suspicins fr cash transactins ver 9,000. T help prevent mney laundering, the Cuncil has set a cash payment limit f 8,000. N cash payments abve 8,000 will be accepted fr any Cuncil service. 15. This is nt designed t prevent custmers making payments fr Cuncil services but t minimise the risk t the Cuncil f high value cash transactins. 16. Our plicy is t: prevent, where pssible, the Cuncil and it s emplyees being expsed t mney laundering. identify the ptential areas where mney laundering may ccur and prvide staff with guidance and training t help prevent mney laundering. reprt all suspicins t the Cuncil s nminated Mney Laundering Reprting Officer cntact details belw. use the Prceeds f Crime Act t recver any mnies lst t mney laundering. Rles and respnsibilities 17. Respnsibility fr identifying acts f mney laundering is mving away frm gvernment agencies and mre twards rganisatins and their emplyees. The Cuncil has assigned the fllwing respnsibilities fr anti-mney laundering measures within the Cuncil:

3 Mney Laundering Reprting Officer (MLRO) 18. The MLRO will review all reprted mney laundering allegatins and decide whether the transactin / circumstances are suspicius. The MLRO will reprt suspicins t the Natinal Criminal Intelligence Service (NCIS) and the Plice, as apprpriate. Emplyees 19. It is each emplyee s respnsibility t remain vigilant and reprt any suspicins t help us prevent and detect mney laundering. Failure t reprt a suspicin f mney laundering may lead t disciplinary actin. Furthermre, Slicitrs and Accuntants have a prfessinal duty t reprt any suspicins f mney laundering. Slihull Audit Services 20. The Internal Audit sectin will mnitr cash payments and highlight any areas f cncern t the MLRO. What shuld I d if I suspect a case f mney laundering? 21. If yu suspect a case f mney laundering: - D nt tell the custmer abut yur suspicins. - Reprt yur suspicins immediately t the Cuncil s Mney Laundering Reprting Officer as fllws: Steve Sparkes (Head f Internal Audit Services) Telephne: ssparkes@slihull.gv.uk - Keep all recrds relating t the transactin(s). If yu are unsure abut what recrds r infrmatin t keep, please ask the MLRO.

4 APPENDIX A Examples f pssible situatins invlving expsure t mney laundering and the prceeds f crime: - Any transactin invlving an unusually large amunt f cash shuld cause cncern and prmpt questins t be asked abut the surce. This will particularly be the case where the value f cash paid exceeds the amunt due t settle the transactin and the persn(s) cncerned ask fr a nn-cash refund f the excess. - If the persn(s) cncerned use trusts r ffshre funds fr handling the prceeds r settlement f a transactin. The reasns fr this shuld be questined. - Care shuld be exercised, and questins asked, where: A third party intermediary becmes invlved in a transactin; The identity f a party is difficult t establish, r is undisclsed; A cmpany is used where the ultimate wnership f the cmpany is cncealed r difficult t verify; and/r A party is evasive abut the surce r destiny f funds. Please remember that the mney laundering regime adpts an all-crimes apprach. While the abve examples are largely cncerned with significant transactins, mney laundering ffences may apply t a very wide range f mre everyday activities within an rganisatin. Fr example: - being cmplicit in crimes invlving the falsificatin f claims; - benefiting frm nn-cmpliance with the cnditins attached t a grant; r - facilitating emplyment n which tax is nt paid. All emplyees shuld be paid via the payrll. Advice abut self emplyed status shuld be btained frm HR prir t engagement.

5 Appendix B Summary f current legislatin and regulatins The legislatin which embdies the UK anti-mney laundering regime is cntained in: - The Prceeds f Crime Act 2002 (POCA), as amended by The Serius Organised Crime and Plice Act 2005 (SOCPA). POCA prvides fr civil recvery f the prceeds frm crime. - The Terrrism Act 2000 (TA 2000) (as amended by the Anti Terrrism Crime and Security Act 2001 and the Terrrism Act 2006). The TA relates t the prceeds f terrrism and terrrist financing. - The Mney Laundering Regulatins These are cncerned with measures t restrict the pprtunities fr mney laundering. POCA and TA 2000 cntain ffences which may be cmmitted by individuals r entities, whereas the 2007 Regulatins deal with the systems and cntrls which businesses are required t have and cntain ffences which may be cmmitted by businesses as well as the key individuals within them.