Anti-money laundering procedures _ sage exchange

Jane Mather is the divisional director for the northern region of SWAT UK, which provides accountancy training and consultancy. Acams money laundering Here she talks about why it’s so important for accountants to protect themselves from potential money laundering issues.

First of all, do you have your own procedures? All firms should have their own procedures manual when it comes to anti-money laundering. What is meant by anti money laundering Who would be high-risk clients for your firms? What are you going to do in terms of ID? How is the client information recorded? It may be digital, or it may be manual.


Trade based money laundering definition Your manual should stipulate what you do internally as regulators will look for a procedures manual from everybody.

Part of the process will be risk assessment and demonstrating that you understand your clients. Source of funds money laundering We need to make sure there are three levels of risk assessment.

• Generic – look at your client base. Sar money laundering Where are the risks of money laundering coming from? Typically we could be looking at tax evasion with clients by way of manipulating income and expenses so as to reduce the tax bill.

• Risk Assessment – this needs to be done for each and every client. What is money laundering in tagalog When we carry out money laundering reviews, we often find that this step is missing. Money laundering legislation uk This is necessary as this will help us determine not only how much due diligence we need to do for the client, but also to work out how much on-going monitoring needs to be carried out. Money laundering manchester It’s not just about identifying the client when they are new; it’s also about reviewing this process on an annual basis. What is money laundering When necessary, we will review a client’s transactions on a case sensitive basis.

• Knowledge – part and parcel of this is demonstrating that you understand your clients. Money laundering meaning in tamil If we look at anti-money laundering training, we ask: “What is indicative of money laundering? What things do we need to look out for?” One of those might be that your client chops and changes his investments for no apparent reason, and this might be an indication of the layering process of money laundering, whereby people pass money through various different transactions so that people lose track of where that money originated from. Combating money laundering Sometimes though, you may have a client that just plays with investments, and sometimes they may simply make daft decisions. Money laundering law If that’s the case, then you need to know that kind of thing in your client information file so that you have that knowledge in the background. Sources of money laundering When it comes to a bit of a heads up on any suspicious activity, you already know about the nature of their circumstances.

Due diligence also relates to verifying the identity of your customer and also ascertaining who the beneficial owners of your client are. Common money laundering schemes When it comes to relevant ID, if you have a normal risk client, then a standard money laundering ID would be to verify the identity of the customer by obtaining a passport or government issued photo ID. Cartel money laundering If they don’t have that, then standard ID would be a non- government piece of documentation, plus another. Money laundering estate agents Therefore internal procedure should tell you what your firm is going to do in terms of ID. Money laundering 2007 You might use some kind of electronic verification system – it should all be detailed in your procedures manual and this needs to be applied consistently within the practice.

Part of the due diligence process is making sure that you have documented who the beneficial owners of the company are. Anti money laundering regulations 2007 These are a separate category from your customer, and if we have a customer that will be the company, the beneficial owners will be anyone who owns more than 25 per cent of the share capital. Anti money laundering training We would probably look at doing a company search to verify the identity of the customer, and the beneficial owners should also be verified on a risk sensitive basis.

Firms also have to show to regulators that they have provided sufficient training for staff, and this could entail attending courses or reading newswires that attach to certain publications. Money laundering wiki We have to prove that the relevant staff have had the relevant training. Laundering money By relevant staff, this means anybody who would have contact with the clients and is in a position to be able to pick up on money laundering activity.

Are you making sure your anti-money laundering procedures are working properly as prescribed? This means you need to carry out an annual anti-money laundering compliance review, or get a third party to do it for you. Money laundering certificate You must demonstrate this review is carried out every year.