<img src="https://certify.alexametrics.com/atrk.gif?account=b2hlr1ah9W20em" style="display:none" height="1" width="1" alt="">
    Login
    Get started

    Crackdown on money laundering and terrorist financing begins

    money laundering

    New money laundering rules have come into force, making it much harder for terrorists and criminals to move money through the UK's financial system. According to HM Treasury, serious and organised crime is costing the UK an alarming £24 billion a year.

    The regulations aim reduce this figure, with an emphasis being put on businesses to improve the quality of the checks they carry out in order to ensure that any suspicious activity can be spotted and reported quickly, meaning police will be able to do their job more effectively and put a stop to corruption or terrorist financing.

    The EU 4th Money Laundering Directive (4MLD) forces businesses to carry out more robust checks to ensure that money changing hands comes from legitimate sources, and won't be laundered or used to fund terrorism.

    Free 4MLD Training Presentation

    Top tips to protect your firm from money laundering

    1. Be sure to conduct risk-based due diligence - This includes for all customers, associates, consultants and third parties. The higher the risk, the higher the level of due diligence is required.
    2. Be clear about your company's rules for standard and enhanced due diligence - And be sure to apply them correctly! There are different rules for UK versus non-UK residents, as well as individuals versus private and public entities. Ask if you are not sure which rules apply.
    3. Watch out for red flags - Look out for anything which is unusual or suspicious. Pay particular attention to unusual behaviour (eg - decisions don't make commercial sense), transactions, high-risk customers and high-risk jurisdictions (ie - countries subject to sanctions).
    4. Obtain and independently verify documentary evidence - In order to confirm identification. money launderingKeep certified copies of this to prove that adequate checks were carried out. Don't assume that these checks have already been made unless you have clear evidence.
    5. Never use your knowledge of your firm's systems or controls to bypass checks - Do not collude with or otherwise assist anyone involved in money laundering or terrorist financing.
    6. Avoid tipping off anyone suspected of money laundering or terrorist financing that an investigation has been launched - There is a two year penalty if you break the rules.
    7. Report any concerns, knowledge or suspicions immediately - Report anything related to money laundering, terrorist financing, and Politically Exposed Persons (PEPs) to your MLRO.

    Leave a comment

    Tick

    Free Trial: Compliance Essentials

    Skillcast Essentials is our best-selling library and there's a reason for that. Essentials library provides comprehensive coverage of the key compliance / conduct issues that companies in the UK face today.

    Request now

    The Risk Perception and Employee Misconduct Gap

    A recent Skillcast survey has highlighted the significant gap between the incidence of misconduct observed by employees at UK firms, and the risk perception of decision makers.  Key finding From our ...

    Read More
    UK Corporate Compliance Survey

    Why did Skillcast conduct a survey? Skillcast is the leading provider of corporate compliance e-learning and tools to companies in the UK, ranging from FTSE100 giants to small and mid-sized ...

    Read More
    Meet Skillcast at Learning Live 2019

    About Learning Live 2019 Learning Live brings together over 500 learning leaders for two days of facilitated group activities and networking tackling the challenges of workplace learning. Uniquely, ...

    Read More
    Success Stories: Royal Mail Serious Games

    Royal Mail, the pre-eminent delivery company in the UK were looking to further embed compliance within their business. Skillcast Serious Games was their ideal solution. Solution An online compliance ...

    Read More