Money Laundering Policy
Last Updated 2 Jul 2020 in Business Conduct
The Society is committed to ensuring that it has appropriate controls in place to adhere to, and remain compliant at all times, with the relevant anti-money laundering legislation in the UK. The Society is also committed to ensuring that is remains compliant with HMRC's registration requirements.
Key points covered:
Definition of money laundering
Requirement of the UK Money Laundering Legislation
Requirements of HMRC
Who to contact
The Society is mindful of the rights and obligations established by the requirements of the UK anti-money laundering regime set out in The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, The Proceeds of Crime Act 2002 and its amendments and The Terrorism Act 2000 and its amendments, in relation to the identification, prevention and reporting of money laundering acts.
The guidelines in this Policy should be read in conjunction with the Guidance to Branches: processing and reporting transactions which details the requirements and reporting procedures under the legislation.
For the Guidance, as well as the Policy and other relevant documents and forms, see the “Who to contact” section.
1. Policy Statement
1.1. The Society is committed to ensuring that it has appropriate controls in place to adhere to, and remain compliant at all times, with the relevant anti-money laundering legislation in the UK, ie. The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, The Proceeds of Crime Act 2002 and its amendments and The Terrorism Act 2000 and its amendments.
1.2. The Society is also committed to ensuring that it remains compliant with HMRC’s registration requirements – HMRC is the supervisory body for most “Money Service Businesses” under the Money Laundering Regulations. A Money Service Business is a business that:
1.2.1. Acts as a bureau de change
1.2.2. Transmits money in any way
1.2.3. Cashes cheques payable to customers
1.3 In accordance with 1.2.1. above, the Society’s Travel outlets are subject to registration with HMRC in relation to its foreign currency exchange activity.
1.4. The Society has currently 56 Travel outlets registered with HMRC.
2.1. The Policy applies equally to full-time and part-time colleagues on a substantive or fixed term contract, and to any associated persons who work for the Society such as agency staff and others employed under a contract of service.
3. Definition of Money Laundering
3.1. Money laundering describes offences involving the integration of the proceeds of crime, or terrorist funds, into the mainstream economy. These offences are defined, under the Proceeds of Crime Act 2002, as the following prohibited acts:
3.1.1. Concealing, disguising, converting, transferring or removing criminal property from the UK
3.1.2. Becoming involved in a transaction or act which an individual knows or suspects facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person
3.1.3. Acquiring, using or possessing criminal property
3.2. Equally, it is a criminal offence to do any of the following:
3.2.1. Doing something that might prejudice an investigation e.g. falsifying a document
3.2.2. Failing to disclose any of the offences listed above, where there are reasonable grounds for knowledge or suspicion
3.2.3. Tipping off a person who is suspected of being involved in money laundering in such a way that prejudices an investigation.
4. Requirements of the UK Money Laundering Legislation
4.1. The main requirements of the legislation are:
4.1.1. To appoint a Money Laundering Reporting Officer (“MLRO”)
4.1.2. To maintain appropriate customer identification procedures; these are commonly known as “Know Your Customer”, or KYC – the essential elements to identify a customer are the customer’s full name, residential address, DOB and original (not photocopies, unless certified) ID document (passport or valid photo card driving licence). Branches should refer to the “Guidance to Branches: processing and reporting transactions” for additional details.
4.1.3. To implement a procedure to enable the reporting of suspicious transactions – the Society has put in place a “Money Laundering Reporting Form” for Branches to report all transactions over £5,000. Branches should refer to the “Guidance to Branches: processing and reporting transactions” for additional details.
The Society’s MLRO is also responsible to report suspicious transactions to the National Crime Agency (“NCA”).
4.1.4. To maintain appropriate record-keeping procedures – The Society ensures that the risk of money laundering and terrorist financing through its businesses is controlled, assessed and managed by quarterly monitoring and scrutinising all transactions over £5,000 effected within its branches against the Money Laundering Reporting Forms received from Branches.
In addition, any suspicious Western Union and Post Office transactions are directly reported to Western Union and Post Office Limited respectively (the Society acts as an agent-only agreement with these entities).
The Society has an obligation to retain all records for a period of five years. Subsequently, these records will be disposed of securely, in line with the Society’s Data Retention & Disposal Policy.
5. Requirements of HMRC
5.1. In compliance with HMRC’s registration requirements, the Society ensures that:
5.1.1. all directors and relevant individuals holding a management function complete the “Fit & Proper” test; these are renewed on a yearly basis
5.1.2. all relevant premises are registered with HMRC
5.1.3. on-going training is provided for all relevant colleagues to ensure they are aware of the applicable legislation, their obligations in terms of carrying out appropriate KYC (see the “Guidance to Branches: processing and reporting transactions” for additional details) and reporting to the MLRO all FX/cash transactions over £5,000.
6.1. This Policy will be reviewed on a yearly basis by the Society’s MLRO, and updated as and when required by changes in the relevant legislation.
7. Who to Contact
7.1. If you have any additional questions regarding this Policy, you should contact the Travel group’s management in the first instance: Richard Simpson, Governance & Compliance Manager (firstname.lastname@example.org) or David Watts-Davies, Learning & Development Manager (email@example.com).
7.2. Alternatively, you can contact the Society’s MLRO (Sean McGovern, Senior Legal Counsel) at: firstname.lastname@example.org.
 The Government has published new regulations transposing the 4th Anti Money Laundering Directive into UK law. The new Regulations are effective as of 26 June 2017. The new Regulations replace The Money Laundering Regulations 2007.
|Document name:||Money Laundering Policy||Date of last review:||July 2020|
|Policy Owner||Secretariat||Issue number:||PSG-MLRO-001|