Money laundering can be described as successfully moving money gained through illegal activities into the legitimate economy. This is usually achieved through a company, a financial institution or a charity.
The banking and financial sector are often regarded by money launderers as a good way to launder their proceeds of crime because of the large numbers of people and sums of money banks deal with daily. Consequently, there are rules and regulations they have to stick to including putting systems in place for prevention and detection of money laundering.
Legislation on Money Laundering
Anti-Money laundering regulations (AML). This requires companies in the regulated sector to carry out due diligence checks on customers and potential customers. The Anti-Money laundering regulations (AML) incorporate the following three pieces of legislation.
- The money Laundering, terrorist financing and transfer of funds regulations
- The proceeds of crime act
- The Terrorism act
The Criminal Finance Act gives authorities extra powers where they can recover the proceeds of crime. This act applies even where the business was unaware of it’s involvement in criminal acts including money laundering, corruption, tax evasion and the financing of terrorism.
The course covers POCA, the Proceeds of Crime Act, 2002. This act forms the primary piece of money laundering UK legislation. The act defines money laundering to have taken place and a crime committed when there this
- transfer, convert, conceal or disguise criminal property
- remove criminal property from the UK
- agree to facilitate the control of criminal property by, or on behalf of, another individual
- acquire, use of possess criminal property
Implementation of Internal controls and monitoring
As companies can be held responsible, even when they are not party to the crimes, it is crucial they implement systems to prevent money laundering.
Financial institutions that are overseen by the Financial Services Authority must remain complaint with standards put in place to stop money laundering, including carrying out due diligence on customers along with a series of other internal controls and monitoring systems which is covered in the course.
- Internal controls and monitoring
- Policy Statements
- How to report money laundering
- Staff responsibilities
- Financial sanctions
Political Exposed Persons (PEPs) are people in positions of power and trust that financial institutions must carry out extra due diligence on. This is because they generally have more opportunity to commit this type of crime. A PEP could be:
- A current or former executive or senior official in a government in the legislative, executive, military,judicial or administrative branches of the government.
- A high ranking member of a political party
- An executive for a government owned company or organisation
Regulated sector companies must meet the day to day standards created by the FSA. These standards help counter money laundering increasing the levels of awareness and vigilance. They establish clear protocols for staff to follow should the suspect money is being laundered. It is important that staff know and understand how to report their suspicions of money laundering. The quicker the problems are reported the sooner the issue can be assessed and resolved.
This course is suitable for anyone working in an organisation that handles large amounts of money. It can also be used as an introduction to the subject for those working or planning to work in a regulated sector.
Training staff in this area can be used as part of a company’s proof that they are actively working to identify and discourage money-laundering.
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Recommended System Requirements
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Duration: 50 minutes (Note: This is based on the amount of video content shown and is rounded off. It does not account in any way for loading time or thinking time on the questions).