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Anti Money Laundering & AML Check s HMRC Publications June 26th - - PowerPoint PPT Presentation
Anti Money Laundering & AML Check s HMRC Publications June 26th - - PowerPoint PPT Presentation
Anti Money Laundering & AML Check s HMRC Publications June 26th Money Laundering Supervision for Accountancy Service Providers Estate Agency Business High Value Dealers Money Service Businesses Trusts or Company Service Providers The
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Anti-Money Laundering Supervision: Estate Agency Businesses HMRC Publication “This is interim guidance and will be amended in due course. The Section on politically exposed persons will be reviewed once the Financial Conduct Authority has published their
- wn guidance”
“This guidance has been submitted for HM Treasury approval”
The Forth Money Laundering Directive
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Risk Based Approach
- Firms to develop risk-based policies, and practitioners to conduct CDD in a risk-based
manner.
- Demonstrate and document that risk assessments are conducted and kept up-to date.
- The word risk appears 149 times in the 4th Directive compared with 36 times in the 3rd
directive. Politically exposed persons (PEPs)
- The rules for politically-exposed persons (PEPs) will no longer be limited to persons outside
the UK.
- Senior officials in international organisations will all be classified as PEPs
- As with foreign PEPs, the provisions will apply to family members and known close
associates.
What’s changing in the Fourth Money Laundering Directive
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Beneficial ownership
- Increased transparency around beneficial ownership of companies and trusts. Companies
will be required to maintain records, evidencing ultimate beneficial owners and update their register with the Companies House on an annual basis.
- The threshold to define beneficial ownership is changing – UK 25% and EP 10%
- PSG already perform a Company House search.
Tax evasion crimes
- The offences will apply to both companies and partnerships. Business will be liable for the
criminal acts of its employees and other persons 'associated' with it, even if the senior management of the business was not involved or aware of what was going on.
- Money paid into third party account by an innocent employee can be seen as Tax Evasion.
Increased Scope
- Carry out CDD on providers of gambling services where customers wish to place a stake or
collect winnings of at least €2,000.
What’s changing in the Fourth Money Laundering Directive
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- Estate Agents will be required to perform customer due diligence (CDD) on not only
the vendor in the transaction but also the purchaser.
- Cash thresholds have been reduced from €15,000 (£12,544) to €10,000 (£8,361).
- Retain CDD documents for 5 years from end of matter or business relationship.
- Agreements for reliance on third party for ID
- New penalties for breaching sanctions - £1million or 50% of breach
- Proposals for a new beneficial ownership register of overseas companies that own
UK property - This register will be the first of its kind in the world.
What’s changing in the Fourth Money Laundering Directive
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AML Checklist to comply with the 4th Directive
Identify and Verify client. CDD on all clients. Enhance Due Diligence for high risk transactions EDD where the customer is not 'face to face’. Check for domestic and international PEPs and do checks on their close associates. Check against Sanctions list. Check validity of ID documents. Check that the client is the owner of the account that firms are remitting funds to or receiving funds from. Establishing and checking source of wealth. If relying on 3rd party for ID check then get written confirmation / agreement . Demonstrate to the Regulators that you took appropriate measure to identify your client and retain the source information for
5 years.
Ongoing Monitoring for current clients.
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PSG can help
- Partnered with GB Group – leader in Identity Data Intelligence.
- Verify the identity of 4 Billion citizens.
- Check identity, date of birth, address – all in real time.
- Bespoke Risk Profiles / scoring.
- Excellent Support.
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GB Group AML and ID verification services are compliant with all relevant legislation & guidelines including;
- 4th Money Laundering Directive
- Law Society & JMLSG guidelines
- Proceeds of Crime Act (UK)
- AML & Counter Terrorism Financing Act
- Checks for domestic and international PEPs
- Check against Sanctions list
- Fulfils retention obligations in relation to verification of identity documents
Date of Birth verification – Best Practice and Enhanced AML Screening reduce false positives on PEPs.
Why PSG & GBG ID 3 Global
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GBG – Anti Money Laundering Checks
- AML CHECK
- AML + DOCUMENTS CHECK
- AML + BANK ACCOUNT CHECK
- AML + DOCUMENTS + BANK ACCOUNT CHECK
- DOCUMENTS ONLY CHECK
- BANK ACCOUNT ONLY CHECK
- DOCUMENTS & BANK ACCOUNT CHECK
- INTERNATIONAL AML - individual checks are all processed through the
same rigorous worldwide Sanction & PEP checking regime as UK data subjects
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