ML 4
Reporting
ML 4.1
Internal reporting
- 01/12/2004
ML 4.1.1
See Notes
This
section deals with the reporting to the firm's MLRO or a person authorised by the
Director General of NCIS of
knowledge or suspicions within the relevant
firm about money
laundering.
- 01/03/2004
ML 4.1.2
See Notes
(1) A relevant
firm must take reasonable steps to ensure that any member of
staff who handles, or is managerially responsible for handling, transactions which may
involve money laundering makes
a report promptly to the MLRO or
a person authorised
by the Director General of NCIS ,
within the same firm or group, if he:
(a) knows or suspects; or
(b) has reasonable grounds to know or suspect;
that a person is engaged in money laundering.(2) The steps to be taken under (1) include
establishing and maintaining arrangements for disciplining any member of staff
who fails, without reasonable excuse, to make a report of the kind envisaged
in this section.
- 01/03/2004
ML 4.1.3
See Notes
A relevant
firm may wish to set up internal systems that allow its staff
to consult with their line manager before sending a report to the MLRO. If a relevant firm sets up
such systems, it should ensure that they are not used to prevent reports reaching
the MLRO whenever
staff have stated that they have knowledge or suspicion that a transaction may involve money laundering.
- 01/12/2001
ML 4.1.4
See Notes
(1) The duty in ML 4.1.2
R (Internal reporting) does not apply where the relevant firm is a professional legal adviser
and the knowledge or suspicion or the reasonable grounds for knowing or suspecting
are based on information or other matter which came to it in privileged circumstances.
(2) Information or other matter comes to
a professional legal adviser in privileged circumstances if it is communicated
or given to the adviser:
(a) by (or by a representative of) its client
in connection with the giving by the adviser of legal advice to the client;
or
(b) by (or by a representative of) a person seeking legal advice
from the adviser; or
(c) by a person in connection with legal proceedings
or contemplated legal proceedings.
(3) The privileged circumstances in (2) do
not apply to information or other matter which is communicated or given with
a view to furthering a criminal purpose or in contravention of a provision
of the regulatory system.
(4) "Professional legal adviser" includes
any person in
whose hands information or other matter may come in privileged circumstances.
- 01/03/2004
ML 4.2
MLRO access to know your business information
- 01/12/2004
ML 4.2.1
See Notes
(1) A relevant
firm must take reasonable steps to give its MLRO, or any person to whom the MLRO's duties have been delegated, access
to any know your business
information it has.
(2)
Know
your business information in (1) is information about:
(a) the financial circumstances of a client or any person on whose behalf
the client has
been acting or is acting; and
(b) the features of the transactions which the relevant firm has entered into with or for
the client (or
that person).
- 01/12/2001
ML 4.2.2
See Notes
In order to do his job properly, the MLRO has to decide whether
to make a report to NCIS.
In most cases, before taking the decision to make a report, the MLRO is likely to need
access to a relevant firm's know your business information.
- 01/12/2001
ML 4.2.3
See Notes
A relevant
firm is not required to increase the amount of information it
gathers and keeps about its clients in
the normal course of its business. Rather, a relevant firm should use its existing client information effectively
by making such information readily available to its MLRO.
- 01/12/2001
ML 4.3
External reporting
- 01/12/2004
ML 4.3.1
See Notes
The purpose of this section is to ensure
that reports made to the MLRO are
considered and that, where appropriate, a report is made available to NCIS. The duty to make
external reports is one of the functions that some groups or larger relevant firms may decide can be delegated
by their MLRO to
suitably qualified staff, as described in ML 7.1.3
G.
- 01/12/2001
ML 4.3.2
See Notes
(1) A relevant
firm must take reasonable steps to ensure that any report required
by ML 4.1.2 R (1) (Internal reporting),
other than a report made to a person authorised
by the Director General of NCIS,
is considered by the MLRO,
or his duly authorised delegate, and that if, having considered the report
and any relevant know your
business information to which he has sought access, the MLRO or his duly authorised
delegate:
(a) knows or suspects; or
(b) has reasonable grounds to know or suspect;
that a person has been engaged
in money laundering,
he reports promptly to NCIS.- 01/03/2004
ML 4.3.3
See Notes
(1) To take reasonable steps as required
by ML
4.3.2 R, the relevant firm should:
(a) require the MLRO to consider a report under ML 4.1.2 R (1) in the light of all
relevant information accessible to or reasonably obtainable by the MLRO;
(b) permit the MLRO to have access to any information, including know your business information,
in the relevant firm's possession
which could be relevant; and
(c) ensure that where the MLRO, or his duly authorised delegate knows
or suspects, or has reasonable grounds to know or suspect, that a person has been engaged
in money laundering,
he makes a report which is not subject to the consent or approval of any other person.
(2) Contravention of (1) may be relied on
as tending to establish contravention of ML
4.3.2 R.
(3) Compliance with (1) may be relied on
as tending to establish compliance with ML
4.3.2 R.
- 01/12/2002
ML 4.3.4
See Notes
A sole
trader with no employees who
knows or suspects, or has reasonable grounds to know or suspect, that a client of his, or the person on whose behalf
the client is
acting, is or has been engaged in money
laundering must make a report promptly to NCIS.
- 01/12/2002