Anti-money laundering

Table of contents

• Definitions and glossary
  • Definitions
  • Glossary
• Chapter 1 – introduction
  • 1.1 General comments
  • 1.2 Status of this practice note
  • 1.3 Definition of money laundering
    • 1.3.1 Placement
    • 1.3.2 Layering
    • 1.3.3 Integration
  • 1.4 Legal framework
    • 1.4.1 Financial Action Task Force
    • 1.4.2 European Union directives
    • 1.4.3 Proceeds of Crime Act 2002
    • 1.4.4 Terrorism Act 2000
    • 1.4.5 The Money Laundering Regulations 2007
  • 1.5 Other Law Society services
  • 1.6 Acknowledgements
• Chapter 2 – the risk-based approach
  • 2.1 General comments
  • 2.2 Application
  • 2.3 Assessing your firm's risk profile
  • 2.4 Assessing individual risk
• Chapter 3 – systems, policies and procedures
  • 3.1 General comments
  • 3.2 Application
  • 3.3 Nominated officers
  • 3.4 Risk assessment
  • 3.5 Internal controls and monitoring compliance
  • 3.6 Customer due diligence
  • 3.7 Disclosures
  • 3.8 Record keeping
  • 3.9 Communication and training
• Chapter 4 – customer due diligence
  • 4.1 General comments
  • 4.2 Application
  • 4.3 CDD in general
    • When is CDD required?
    • What is CDD?
    • Methods of verification
    • Reliance and outsourcing
    • Timing
  • 4.4 Ongoing monitoring
  • 4.5 Records
  • 4.6 CDD on your clients
    • Natural persons
    • Partnerships, limited partnerships and UK LPPs
    • Companies
    • Other arrangements or bodies
    • Government agencies and councils
  • 4.7 CDD on beneficial owners
    • 4.7.1 General comments
    • 4.7.2 Assessing the risk
    • 4.7.3 Agency
    • 4.7.4 Companies
    • 4.7.5 Partnerships
    • 4.7.6 Trusts
    • 4.7.7 Other arrangements and legal entities
  • 4.8 Simplified due diligence
    • 4.8.1 What is simplified due diligence?
    • 4.8.2 Who qualifies for simplified due diligence?
  • 4.9 Enhanced due diligence
    • 4.9.1 Non face-to-face clients
    • 4.9.2 Politically exposed persons
  • 4.10 Existing clients
  • 4.11 FATF counter measures
  • 4.12 Annex A – examples of beneficial ownership for a trust
• Chapter 5 – money laundering offences
  • 5.1 General comments
  • 5.2 Application
  • 5.3 Mental elements
  • 5.4 Principal money laundering offences
    • 5.4.1 General comments
    • 5.4.2 Section 327 – concealing
    • 5.4.3 Section 328 – arrangements
    • 5.4.4 Section 329 – acquisition, use or possession
  • 5.5 Defences to principal money laundering offences
    • 5.5.1 Authorised disclosures
    • 5.5.2 Adequate consideration defence
  • 5.6 Failure to disclose offences – money laundering
    • 5.6.1 General comments
    • 5.6.2 Section 330 – failure to disclose: regulated sector
    • 5.6.3 Section 331 – failure to disclose: nominated officer in the regulated sector
    • 5.6.4 Section 332 – failure to disclose: nominated officer in the non-regulated sector
  • 5.7 Exceptions to failure to disclose offences
    • 5.7.1 Reasonable excuse
    • 5.7.2 Privileged circumstances
    • 5.7.3 Lack of training
  • 5.8 Tipping off
    • 5.8.1 Offences
    • 5.8.2 Defences
    • 5.8.3 Making enquiries of a client
• Chapter 6 – legal professional privilege
  • 6.1 General comments
  • 6.2 Application
  • 6.3 Duty of confidentiality
  • 6.4 Legal professional privilege
    • 6.4.1 General overview
    • 6.4.2 Advice privilege
    • 6.4.3 Litigation privilege
    • 6.4.4 Important points to consider
    • 6.4.5 Crime/fraud exception
  • 6.5 Privileged circumstances
  • 6.6 Differences between privileged circumstances and LPP
  • 6.7 When do I disclose?
• Chapter 7 – terrorist property offences
  • 7.1 General comments
  • 7.2 Application
  • 7.3 Principal terrorist property offences
  • 7.4 Defences to principal terrorist property offences
  • 7.5 Failure to disclose offences
  • 7.6 Defences to failing to disclose
  • 7.7 Section 21D tipping off offences: regulated sector
  • 7.8 Defences to tipping off
  • 7.9 Other terrorist property offences in statutory instruments
  • 7.10 Making enquiries of a client
• Chapter 8 – making a disclosure
  • 8.1 General comments
  • 8.2 Application
  • 8.3 Suspicious activity reports
    • 8.3.1 What is a SAR?
    • 8.3.2 Who discloses?
    • 8.3.3 When?
    • 8.3.4 Types of disclosures
    • 8.3.5 How to disclose
    • 8.3.6 Information to include
    • 8.3.7 Getting consent from SOCA to proceed
    • 8.3.8 Talking to a SOCA representative
    • 8.3.9 Confidentiality of SARs
  • 8.3.4 Feedback on SARs
• Chapter 9 – enforcement
  • 9.1 General comments
  • 9.2 Supervision under the regulations
  • 9.3 Disciplinary action
  • 9.4 Offences and penalties
  • 9.5 Joint liability
  • 9.6 Prosecution authorities
• Chapter 10 – civil liability
  • 10.1 General comments
  • 10.2 Constructive trusteeship
  • 10.3 Knowing receipt
  • 10.4 Knowing assistance
  • 10.5 Making a disclosure to SOCA
  • 10.6 Notify your professional indemnity insurers
• Chapter 11 – money laundering warning signs
  • 11.1 General comments
  • 11.2 General warning signs
    • 11.2.1 Secretive clients
    • 11.2.2 Unusual instructions
    • 11.2.3 Use of client accounts
    • 11.2.4 Suspect territory
  • 11.3 Private client work
    • 11.3.1 Administration of estates
    • 11.3.2 Trusts
    • 11.3.3 Charities
    • 11.3.4 Powers of attorney/deputyship
  • 11.4 Property work
    • 11.4.1 Ownership issues
    • 11.4.2 Methods of funding
    • 11.4.3 Valuing
    • 11.4.4 Lender issues
    • 11.4.5 Tax issues
  • 11.5 Company and commercial work
    • 11.5.1 Forming a new company
    • 11.5.2 Holding of funds
    • 11.5.3 Private equity
    • 11.5.4 Collective investment schemes
• Chapter 12 – offences and reporting practical examples
  • 12.1 General comments
  • 12.2 Principal offences
  • 12.3 Should I make a disclosure?
    • 12.3.1 Property transactions
    • 12.3.2 Company transactions
• Summary of amendments

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