Prevention of money laundering procedures

1.  Introduction

These procedures are to be followed to ensure compliance with the Terrorism Act 2000, the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007. Council employees who fail to follow these procedures could themselves be in breach of the legislation and liable to prosecution for a range of offences which carry potential custodial sentences.
 

2.  Training

2.1. The Council will train all current employees who may come into contact with persons engaged in money laundering so that they are aware of the provisions of sections 18 and 21A Terrorism Act 2000, Part 7 Proceeds of Crime Act 2002 and the provisions of the Money Laundering Regulations 2007

2.2. The Council will also give such employees training in how to recognise and deal with transactions which may be related to money laundering

2.3. New employees who may come into contact with persons engaged in money laundering will receive training as specified in 2.1 and 2.2 above as part of their induction process.
 

3.  Identification Procedures

3.1. In the following circumstances the Council MUST take appropriate steps to verify the identity of a person who is (or who is applying to) do business with the Council:

3.1.1. Where an officer involved in the transaction knows or suspects that the transaction involves money laundering or

3.1.2. Where a one off transaction involves the payment to or by the other party of €15000 or more or

3.1.3. In respect of two or more one off transactions with the same party which appear to the officer to be linked (whether at the outset or later) the total payment to or by the other party will be €15000 or more

3.1.4. At the rate of exchange prevailing at the date of writing these procedures €15000 was just over £12900. Officers should check the exchange rate if they believe the €15000 limit may be reached.

3.2. Where under paragraph 3.1. above the Council has a duty to verify identity, as soon as possible after the first contact between the other party (if an individual) and the Council has been made the officer dealing with the transaction will:

3.2.1. Require the other party to produce satisfactory evidence of identity in the form of:

3.2.1.1. A passport

3.2.1.2. A photo driving licence

3.2.1.3. A driving licence

3.2.1.4. A birth certificate

3.2.1.5. A marriage certificate

3.2.2. Require the other party to produce evidence of current address in the form of:

3.2.2.1. A bank statement

3.2.2.2. A credit card statement

3.2.2.3. A mortgage or insurance details

3.2.2.4. A utility bill

3.2.3. If for any reason it is not practicable for the other party to be physically present when identified consideration must be given to the greater potential for money laundering. In such cases the other party should be required to provide copy documents certified as true copies of the originals by a practicing solicitor. The officer should check with The Law Society to ensure that the solicitor is known to them and then obtain confirmation from the solicitor that he or she signed the copies.

3.3. Where under paragraph 3.1. above the Council has a duty to verify identity, as soon as possible after the first contact between the other party (if a company) and the Council has been made the officer dealing with the transaction will:

3.3.1. Require the individual representing the company to provide the company's full name and company registration number, details of the registered office address and any separate trading address relevant to the contract concerned. The officer will then carry out a company search to verify details given and will check the location of any relevant trading address.

3.3.2. In the event that the company is effectively owned by one or only a few individuals the officer should verify the identity of that or those individuals in accordance with 3.2. above.

3.4. Where the other party is acting or appears to act for another person that person's identity should be verified as in 3.2. or 3.3. above.

3.5. Where satisfactory evidence of identity is not available the business arrangement or one off transaction should not proceed further.
 

4.  Record keeping

4.1. Where evidence of identification is obtained pursuant to paragraph 3 above the Council is required to keep records of that evidence.

4.2. The records required to be kept are:

4.2.1. A copy of that evidence

4.2.2. Information as to where a copy of that evidence may be obtained

4.2.3. Where it is not reasonably practicable to comply with 4.2.1 or 4.2.2 above information as to where the evidence of identity may be re-obtained.

4.3. In all cases the Council must also keep a record containing details relating to all transactions carried out by the Council in the course of relevant business

4.4. Records must be maintained:

4.4.1. In respect of the information referred to in paragraph 4.2. above for a period of 5 years commencing from the date the business relationship ends or (in the case of a one off transaction or transactions) five years from the conclusion of all activities arising in the course of that transaction or (if a series of transactions) the last of them to end

4.4.2. In respect of the records mentioned in paragraph 4.3. above the period is at least five years commencing with the date on which all activities taking place in the course of the transaction in question were completed

4.4.3. Copies of identification documents and the records required to be kept by this paragraph shall be kept on the relevant transaction file or files.
 

5.  Internal reporting procedures

5.1. The Council is required to nominate one of its officers for the purpose of receiving reports under the legislation. The Council's nominated officer for this purpose (the Money Laundering Reporting Officer - MLRO) is the Council's Assistant Director Governance and Legal.

5.2. Officers are required to make a disclosure to the MLRO of any information which comes into their possession in the course of their employment as a result of which he or she knows or suspects or has reasonable grounds for knowing or suspecting that a person is engaged in money laundering

5.3. The time for making the disclosure is as soon as reasonably practicable after the information comes into the officer's possession. In the absence of the MLRO then the officer with such information should disclose the information to Enforcement Team Leader. In the absence of both the MLRO and the Enforcement Team Leader the officer concerned the National Crime Agency (NCA). Details of the information to be disclosed are set out at paragraph 5.7 below. Further guidance as to the information required can be obtained from the NCA website. 

5.4. Where a disclosure is made to the MLRO he or she must consider it in the light of any relevant information which is available to the Council and determine whether it gives rise to such knowledge or suspicion or such reasonable grounds for knowledge or suspicion that a person is engaged in money laundering

5.5.  Where the MLRO does so determine he or she shall disclose the information to NCIS as soon as is reasonably practicable. The disclosure will be in writing.

5.6. If the MLRO determines that it is not necessary to disclose information to NCIS he or she will record all information known to the Council at that time and the reasons why he or she has decided that such information does not give rise to knowledge or suspicion or reasonable grounds for knowledge or suspicion that a person is engaged in money laundering.

5.7. When disclosure is made to SOCA such disclosure should include the following details where known:

5.7.1. Name of persons or companies involved

5.7.2. Date of birth

5.7.3. All known addresses including previous addresses, post codes and any separate trading addresses

5.7.4. Company names

5.7.5. Directorships

5.7.6. Passport details

5.7.7. Phone numbers

5.7.8. Any other relevant data

5.7.9. Full details of the reasons for suspicion including copies of any relevant documentation

5.7.10. If a decision is required urgently to enable a transaction to proceed a clear statement as to when a decision is required by and the reason for the request
 

6.  Restriction on transactions

6.1. Where the MLRO has made or is contemplating making a disclosure to SOCA pursuant to paragraph 5.6. above or a disclosure to SOCA has been made or is contemplated by another officer in the absence of the MLRO the MLRO or other officer as the case may be shall notify all officers involved in any transactions which are the subject of such disclosure or contemplated disclosure that no further steps are to be taken with regard to any transactions involving the same party for a period of seven (7) days unless within that period SOCA have indicated that it consents to the transaction proceeding.

6.2. In the event that SOCA refuses consent to the transaction or transactions proceeding within seven (7) days the MLRO or other officer who made the disclosure shall forthwith notify all officers involved in any such transactions that no further steps are to be taken with regard to any transactions involving the same party for a period of thirty one (31) days unless within that period SOCA have indicated that it consents to the transaction proceeding.
 

7.  Tipping off

7.1. Officers are reminded that tipping off is a serious offence.

7.2. An officer who knows or suspects that a disclosure to SOCA has been made or may be made under paragraph 6 above must not disclose to any other person anything which may prejudice the investigation

7.3.  For the purposes of paragraph 7.2. above where an officer knows or suspects that a disclosure has or will be made by another officer to the MLRO he or she is likely to have grounds to suspect that a disclosure has or will be made by the MLRO to SOCA unless the MLRO has confirmed that he is not making such a disclosure

7.4.  Where as a result of a disclosure being made a transaction is unable to proceed as set out in paragraph 6 above it follows that officers are prevented from disclosing the reason for delay