Anti Money Laundering Compliance Solicitors

What is Anti Money Laundering Compliance?

AML compliance helps business uncover suspicious activity associated with criminal acts to try and prevent the movement of money which criminals have illegally obtained entering into the economy.

Why is Anti Money Laundering Compliance important?

AML compliance is important to ensure institutions take appropriate measures to protect themselves and the economy against financial crimes.

What legislation governs AML in the UK?

There are 3 main pieces of legislation:

1. Proceeds of Crimes Act 2002
2. The Terrorism Act 2000
3. The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended in 2019)

What businesses are affected by AML regulations in the UK?

Mainly financial institutions and professional service providers however retailers, hospitality and real estate are also covered.

Some of these industries are obliged to register on the anti-money laundering register. These include:

• Financial and credit businesses
• Independent legal professionals
• Accountants, tax advisors, auditors and insolvency practitioners
• Trust and company service providers
• Certain letting agency businesses
• Casinos
• High value dealers of luxury goods
• Art market participants.

What is ‘Customer Due Diligence’ under AML regulations?

Good practice for businesses to prevent AML:

• Analyse fraud risk
• Monitor customer activity
• Treat each transaction as an independent one.

The onus is on business to ensure that customer due diligence is undertaken on every customer who undertakes a financial transaction. By following best practice, businesses need to know their customers, know their transactions and understand where funding for those transactions come from.

What are the penalties for non-compliance with AML regulations?

• HMRC can impose civil penalties – these vary dependent upon the seriousness of the offence, compliance history and size of business. Range from warning letters to imposition of fines.
• Criminal prosecutions under the legislation including fines and maximum sentence of 14 years
• Monetary penalties for financial sanctions breaches

How Franklins Solicitors support organisations with Anti Money Laundering Compliance

Providing a company with an AML audit to understand potential risk areas and suggest preventative measures.

Backed by criminal sanctions and the threat of imprisonment for non-compliance, the regulations are not to be ignored. Enforcement applies whether a breach has been deliberate or through naivety.

Franklins can assist with advice on the requirements of and compliance with money laundering regulations and legislation.

In particular, our service includes all, or part, of the following:

• Discussing your current systems and internal procedures to ensure that a bespoke policy will meet your needs;
• Working with you to risk assess your business and its processes;
• Drafting policies, directives and advisory notes to support staff and the MLRO;
• Training in anti-money laundering;
• Dealing with Due diligence enquiries individually or on a retainer basis working with your MLRO;
• Monitoring on-going compliance;
• Supporting the MLRO in ensuring procedures are in place to report suspicious activity to the National Crime Agency.

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