CERTIFICATE TO BE COMPLETED BY PRACTICE UNITS HOLDING CLIENT MONEY.

Transcription

1 ACCOUNTS RULES ETC CERTIFICATE CERTIFICATE 1 CERTIFICATE TO BE COMPLETED BY PRACTICE UNITS HOLDING CLIENT MONEY. ONE CERTIFICATE IN THIS FORM WILL BE REQUIRED IN A YEAR FROM ALL PRACTICE UNITS HOLDING CLIENT MONEY. FOR MOST PRACTICE UNITS THIS WILL BE THE FIRST CERTIFICATE SUBMITTED AFTER THE YEAR END. THE NEXT CERTIFICATE TO BE SUBMITTED AFTER THIS WILL, FOR MOST PRACTICE UNITS, BE THE SHORTER CERTIFICATE 1A. Practice unit Number: Practice unit Name: Practice unit Address: Certificate for the Accounting Period ending (Insert date) Contents 1) Accounts Rules Questions Page 2 2) Accounts Rules Risk Management Questions Page 3 3) Guarantee Fund Undertaking Confirmation Page 3 4) Practice Rules Page 3 5) Key Financial Information Page 4 6) Manager Declarations (Sections 1-5) Page 4 7) ML Regulations/POCA Questions & MLRO/Manager Sign Off Pages 5 8) Commentary on Issues identified Page 6 9) Certificate Completion Instructions Page 7 1

2 LAW SOCIETY OF SCOTLAND ACCOUNTS RULES ETC COMPLIANCE CERTIFICATE 1 Accounting (Rules to 6.11 ) Y N 1.1 At all times during the period the total of client s money held has been equal to (or exceeded) the total sum at the credit of the client accounts 1.2 Client monies are paid promptly into a client account in accordance with Rule Drawings from the client accounts during the period are in accordance with Rule & Client Account(s) (including those for Client funds invested in specified accounts) books and accounts have at all times during the accounting period been properly written up in accordance with Rule Monthly reconciliations between client bank statements and client bank accounting records have been carried out. 1.6 Quarterly reconciliations have been carried out between the accounting records for Client Funds invested in Specified Accounts and statements provided by the bank/building society 1.7 A process is in place to ensure that any issues identified by the above reconciliations (at 1.5 & 1.6) will be investigated and resolved within an acceptable timescale 1.8 The practice unit s approach to earning interest for clients has been in accordance with Rule The practice unit s processes result in client monies being returned to clients as soon as there is no longer any proper reason to retain the money (Subject to Rule 6.11) 1.10 Where the practice unit no longer has current contact details for clients, the practice unit s processes to investigate and/or clear these balances is in accordance with Rules to

3 LAW SOCIETY OF SCOTLAND ACCOUNTS RULES ETC COMPLIANCE CERTIFICATE 2 Risk Management (Rule 6.13) Y N 2.1 All officers and employees (in all branches of the practice unit) required to implement and/or adhere to the accounts rules have received adequate training appropriate to their roles 2.2 All officers and employees (in all branches of the practice unit) required to implement and/or adhere to the accounts rules receive adequate supervision regarding the accounts rules 2.3 The systems employed by the practice unit to carry out/secure compliance with the provision of the Accounts Rules are fit for this purpose 2.4 No major change is planned to the practice unit s accounting system during the next accounting period (eg: new system implementation, significant upgrading, initial computerisation) (Indicate Yes if this is correct and No if a change is to take place) 2.5 All cashroom functions are performed in-house and the practice unit is not considering any outsourcing of these functions over the next 12 months 2.6 During the accounting period, the Cashroom Manager had the skills necessary to discharge his/her responsibilities as Cashroom Manager. 2.7 The method of storage of accounting records (defined in Rule 6.1) ensures that during the retention period, such records are readily available in accordance with that rule 3 Guarantee Fund Undertaking Confirmation Incorporated Practices Only 3.1 Guarantee Fund Undertakings have been submitted to the Law Society of Scotland for all current mangers/members/directors (Indicate N/A if the practice unit is not an incorporated practice) Y N N/A 4 Practice Rules Y N 4.1 The practice unit has complied with the requirements of Rules during the period, where necessary. 4.2 A complete and accurate listing of POAs is submitted with this Certificate in accordance with Rule

4 LAW SOCIETY OF SCOTLAND - ACCOUNTS RULES ETC COMPLIANCE CERTIFICATE 5 - Key Financial Information 5.1 Client Account Reconciliations: Monies held on General Client Account General Client Account surplus or (deficit) Funds held for named clients Funds held for named clients surplus or (deficit) Loans for named clients (bridging loans taken on behalf of named clients under Rule 6.19) Balances due by named clients (as above) (As at the certificate end date) / / (Previous quarter end) / / 5.2 Key Practice Unit Financial Indicators Y N During the accounting period the practice unit has not experienced difficulties in operating within its agreed banking facilities The practice unit is up to date with its payments of VAT/PAYE/NIC to HMRC 6) Sections 1-5 Manager s Declaration I declare that the information given in Sections 1-5 of this Certificate is true to the best of my knowledge and belief. Cashroom Manager LAW SOCIETY OF SCOTLAND MEMBERSHIP NUMBER Second Signatory LAW SOCIETY OF SCOTLAND MEMBERSHIP NUMBER 4

5 LAW SOCIETY OF SCOTLAND - ACCOUNTS RULES ETC COMPLIANCE CERTIFICATE 7 Rule Money Laundering Regulations/Proceeds of Crime Act etc Y N 7.1 The practice unit has established and operated appropriate customer due diligence and ongoing monitoring policies during the accounting period. 7.2 The practice unit has established and operated appropriate and documented risk assessment procedures during the accounting period. 7.3 The practice unit has established and operated appropriate record keeping procedures during the accounting period. 7.4 The practice unit has established and operated appropriate procedures for the monitoring and management of compliance with the Money Laundering Regulations and the practice unit s AML policies and procedures 7.5 The practice unit has a process which ensures that the Money Laundering Reporting Officer receives timely reports of potentially suspicious transactions 7.6 A Suspicious Activity Report (SAR) is submitted to the Serious Organised Crime Agency (SOCA) as soon as it is known or suspected that a person is engaged in money laundering or dealing in criminal property Where the practice unit has relied on another person to carry out due diligence this has complied with Regulation 17 of the Money Laundering Regulations. 7.8 Relevant staff have been adequately trained in applying the Money Laundering Regulations 7.9 The practice unit is aware of its obligations under the Proceeds of Crime Act 2002 and Terrorism Act 2000 and complies with these Section 7 Money Laundering Reporting Officer/Manager s Declaration I declare that the information given in Section 7 of this Certificate is true to the best of my knowledge and belief. Money Laundering Reporting Officer MEMBERSHIP NUMBER LSS MEMBERS ONLY Second Signatory (Cashroom Manager) or another manager/member/director where existing and where the MLRO/Cashroom Manager are the same person LAW SOCIETY OF SCOTLAND MEMBERSHIP NUMBER 1 You should answer Y if you feel the systems are adequate, even if no suspicious transactions have been identified or if no SAR has been considered to be necessary. 5

6 8 Commentary on Issues Identified Ref: 1.1 Comment (Document explanations for any N ticked in the previous pages) 6

7 LAW SOCIETY OF SCOTLAND ACCOUNTS RULES ETC COMPLIANCE CERTIFICATE 9) - CERTIFICATE COMPLETION INSTRUCTIONS Which Practice Units Should Complete This Certificate This certificate should be completed by any practice unit which has held any client monies at any point during the accounting period if: This is the first certificate required after the practice units year end This is the practice units first certificate The Law Society of Scotland has asked you to complete this certificate at any time not covered in the above two points Self Assessment Most of the questions in this certificate require the Cashroom Manager or Money Laundering Reporting Officer to make an assessment of the adequacy of the systems in place within the practice unit to ensure rule compliance. Completion of the certificate is not intended to be a hugely time consuming exercise. Instead the questions asked are all those which an active Cashroom Manager and Money Laundering Reporting Officer should be able to answer as a result of their knowledge of the systems in place in the practice unit and their ongoing management and supervision. These assessments can be made based on one or several of the methods noted below: Your knowledge of the systems through personal involvement or effective supervision by yourself Information made available to you through the supervisory systems of your practice unit Information made available to you through review work undertaken eg: by an external accountant or other advisor Other checks undertaken to support the completion of the certificate Whatever method is adopted will need to be sufficient to enable the Cashroom Manager and Money Laundering Reporting Officer to confidently complete the declarations within certificate. Note re Section 5 Figures reported under Section 5, Key Financial Information, should not be left blank; however if any areas are left blank, discretion will be used as to whether or not the certificate must be amended. In some cases if an item is left blank, this will be assumed as reporting a nil figure. Issues Identified Most of the questions in this certificate require yes/no answers to be provided. In each case where the answer is no, detail of the issue identified should be provided in Section 8 along with information on how the practice unit is planning to resolve the issue. This information will enable the Financial Compliance Department to assess the issue and determine how we can assist the practice unit. This may take various forms such as a follow up call through to the scheduling of an inspection. Information & Guidance The Accounts Rules are available on the Law Society of Scotland website. The Financial Compliance Department has issued guidance on each of the accounts rules which is available on the Society s website under the Rules & Guidance section. The Financial Compliance Department can be contacted on if further guidance is needed. 7