Anti-Money Laundering and Counter-Terrorist Financing Policy
Introduction to the Policy
The Riba Foundation is required under the Money Laundering Regulations 2007 to put in place appropriate systems and controls to forestall money laundering and terrorist financing. This policy contains the procedures that we have developed in order to comply with these obligations.
The Money Laundering Regulations require that a firm has a Nominated Officer to ensure that there is up-to-date knowledge of issues relating to Anti-Money Laundering and Counter-Terrorist Financing throughout the Firm, implement appropriate policies and procedures and receive reports of suspicious activity. The Nominated Officer (Money Laundering Reporting Officer) for Riba Foundation is Alvaro Riba.
What is money laundering and terrorist financing?
Money laundering is the process through which proceeds of crime and their true origin and ownership are changed so that the proceeds appear legitimate. Terrorist financing is providing or collecting funds, from legitimate or illegitimate sources, to be used to carry out an act of terrorism.
Why is anti-money laundering and counter-terrorist financing important to [Enter Firm name here]?
Lawyers facilitate significant transactions and are gatekeepers to the legal system. The anti-money laundering (AML) and counter-terrorist financing (CTF) regime is designed to prevent our services being used by criminals. You have obligations under the AML/CTF regime to spot and report money laundering and terrorist financing. Failure to meet these obligations can lead to criminal penalties, substantial fines, disciplinary action by the SRA and untold damage to your own and ’s reputation.
How does money get laundered?
Typically money laundering involves three stages:
The process of placing criminal property into the financial system. This might be done by breaking up large sums of cash into smaller amounts or by using a series of financial instruments (such as cheques or money orders) which are deposited at different locations.
The process of moving money that has been placed in the financial system in order to obscure its criminal origin. This is usually achieved through multiple complex transactions often involving complicated offshore company structures and trusts.
Once the origin of the money is disguised it ultimately must reappear in the financial system as legitimate funds. This process involves investing the money in legitimate businesses and other investments such as property purchases, or setting up trusts.
We are most likely to become involved in the layering stage but potentially could be involved in any stage.
How do I know if my matter involves money laundering or terrorist financing?
You do not have to behave like a police officer but you do have to remain alert to the warning signs of money laundering and terrorist financing and make the sort of inquiries that a reasonable person (with the same qualifications, knowledge and experience as you) would make.