SIFA 14
Money Laundering
SIFA 14.1
Money Laundering
- 01/12/2004
SIFA 14.1.1
See Notes
FSMA gives us a statutory objective of reducing the extent to
which regulated firms are used in connection with financial crime, including
money laundering. FSMA gives us powers to make our own rules on money laundering,
as well as prosecuting firms for breaches of the Money Laundering Regulations
2003. Both the rules and the Regulations are high level. They are complemented
by more detailed industry guidance produced by an industry body, the Joint
Money Laundering Steering Group (JMLSG). The JMLSG Guidance Notes aim to help
firms to comply with the rules and the Regulations, in particular with customer
identification requirements.
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The Money Laundering sourcebook
SIFA 14.1.2
See Notes
The Money Laundering (ML) sourcebook details our Rules and Guidance
on anti-money laundering systems and controls that aim to reduce the opportunities
for money laundering. Alongside these regulatory requirements, there are also
requirements imposed by the criminal law and the Proceeds of Crime Act 2002.
So, there are two parallel regulatory regimes and firms must comply with both.
| Our rules require your firm to: | ML ref. | |
| • |
appoint
an Approved Person to be the Money Laundering Reporting Officer (MLRO). The
MLRO is responsible for overseeing your firm's anti-money laundering activities.
They must produce a report to senior management, at least once every year
on any relevant money laundering issues and your firm's compliance with the
Money Laundering sourcebook. This report also needs to detail any necessary
remedial action; | 2.1 & 7.1 |
| • |
take reasonable steps to identify clients. The Joint
Money Laundering Steering Group Guidance Notes show how to comply with this
rule; | 3.1 & 3.2 |
| • |
have clear procedures for internal (made to the MLRO
at the firm) and external reporting (made
by the MLRO to NCIS) of suspicious activity; | 4.1 & 4.3 |
| • | obtain and make use of government or Financial Action Task Force findings; | 5.1 |
| • |
train staff who handle, or are managerially responsible for the
handling of, transactions which may involve money laundering at
least every 24 months in their anti-money laundering responsibilities; and | 6.2 & 6.3 |
| • | keep relevant records. | 7.3 |
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SIFA 14.2
Further rules to take into consideration
- 09/09/2005
SIFA 14.2.1
See Notes
You should also take the following rules
into consideration:
•If you are a
sole trader with no employees, not all the provisions in ML apply (ML 8.1).•Other areas
of the FSA Handbook, which refer to money laundering, are detailed in ML
1.2.3 G. This includes rules in SYSC 3 that place a specific duty on senior management to take full responsibility
for all areas of compliance with the Rules and to demonstrate that your firm
has adequate systems and controls in place.
| The following sections of the Guide are also relevant: | |
| • | 'FSA Principles, Systems and Controls' - Chapter 5 |
| • | 'Know your customer' - Chapter 9.8 |
| If you do mortgage or general insurance business you should also refer to MIGI 15. | |
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