Those working within the regulated sector must appreciate the importance of having a detailed knowledge of the Money Laundering Regulations 2007 and implement stringent systems to ensure full compliance. In addition regulators may impose their own money laundering principles. Financial institutions, for example, which are subject to regulation by the Financial Services Authority (“FSA”) must comply with the FSA’s principles on money laundering.

The courts and regulators consider breaches of money laundering legislation as a serious matter; in 2010 the FSA fined RBS £5.6m for failing to adequately screen customers and payments to prevent its banks from being used for money laundering or the financing of terrorist activities. It is therefore of vital importance to comply with the legislation and regulations in place by ensuring that adequate anti-money laundering systems are in place and, more importantly, such systems are adopted.

The main provisions of the Money Laundering Regulations 2007 require firms in the regulated sector to put in place controls to prevent them being used for money laundering. These include:

• identity checks
• keeping records of relevant documents
• training employees in anti money-laundering
• having in place a nominated officer (known as a Money Laundering Reporting Officer), and
• putting in place procedures to enable employees to report suspicious activities.

We can assist with providing:

• Advice on the requirements of money laundering regulations and legislation
• Advice on compliance with money laundering regulations and legislation
• Advice and assistance on anti-money laundering policies and procedures
• Training in anti-money laundering