Anti-Money Laundering Checks 2021: A Complete Guide

by | May 19 2021 | Criminal Defence

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Anti-Money Laundering Checks | Read Time 3-5 Minutes.

There has become no better way to deal with terrorist, traffickers, and criminals in today’s ever-advancing digital climate than to stop their funding. How is this done? Anti-money laundering checks and comprehensive risk-based approaches enforced in the UK across financial institutions and businesses. Through robust anti-money laundering checks, it is has given the edge financial institutions need to crack down on criminals.

This article explains the true value of establishing effective anti-money laundering checks, human resources, procedures, and technologies towards anti-money laundering compliance. Furthermore, it includes a comprehensive anti-money laundering compliance checklist that businesses can use as a guide towards preventing money laundering.

What is Anti-Money Laundering?

Anti-money laundering is a term used to explain the collection of laws, processes, and regulations used to prevent the illegal generation of income. In the UK, the government’s anti-money laundering regulations are set to protect businesses from being victim to money laundering schemes launched by criminals. Furthermore, they ensure sufficient procedures and control within firms to minimise the risk of money laundering and ensure anti-money laundering checks are completed.

Anti-money laundering checks are used to validate a person’s true identity and check the money has been acquired through legitimate means. Furthermore, anti-money laundering checks help prevent a wide range of criminal activities, including corruption, tax evasion, market manipulation, and illicit goods trade.

Anti-money laundering regulations in the UK apply to the following business sectors:

  • Accountants
  • Financial Services
  • Estate Agents and Solicitors

The businesses within the listed sectors are covered by the anti-money laundering regulations and must be monitored by a supervisory authority. However, if your business fall’s outside of this list but is typically associated with one of the 7 categories below, it will need to be registered with the HMRC.

Types of businesses that typically need to be registered with the HMRC:

  • Money service businesses (not supervised by the Financial Conduct Authority)
  • High-value dealers
  • Trust and company service providers
  • Accountancy service providers
  • Bill payment service providers (not supervised by a professional body)
  • Telecommunication, digital and payment service providers (not supervised by a professional body)
  • Art market
  • Letting agencies
It is a legal requirement in the UK to register with the HMRC before undertaking trade. Furthermore, trading while not registered would result in a criminal offence and may result in a prosecution or fine.

anti-money laundering Compliance Checklist

Businesses in the UK are required by law to perform anti-money laundering checks and adhere to anti-money laundering regulations. Businesses can use the following checklist as an anti-money laundering guide to get started.

Anti-Money Laundering Check List UK

1. Appoint A Chief Compliance Officer

A key element of the anti-money laundering regulations is that it requires businesses to appoint a Money Laundering Reporting Officer (MLRO). The MLRO is appointed to be a senior employee who implements and monitors anti-money laundering policies and procedures.

A chief compliance officer (CCO) role is to effectively communicate the company’s key principles and compliance regulations to others within the business. The chief compliance officer is usually the head of the compliance department. Under the position are a series of managers and compliance officers, depending on the size structure of the business. Furthermore, the chief compliance officer typically has a relationship with the board of directors, who provides oversight of the business’s compliance program.

It is vital for businesses to regularly update and review anti-money laundering risks assessments. Furthermore, This will help to prevent new risks arising and demonstrate robust anti-money laundering compliance.
we can help you today

If you own a business that has come under investigation for money laundering or need advice regarding a money laundering matter, please do not hesitate to call us today. We can connect you with a specialist money laundering solicitor. Furthermore, we can advice on anti-money laundering checks.

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