National Occupational Standards
Anti-money Laundering and
Countering Terrorist Financing
Drafted by the Financial Skills Partnership (FSP) [updated 2011] based on the original
2004 version created by the Financial Services Skills Partnership (FSSC) in
collaboration with the International Compliance Association (ICA).
NOTES ABOUT NATIONAL OCCUPATIONAL STANDARDS
What are National Occupational Standards?
National Occupational Standards (NOS) are statements of competence which articulate the
requirements for effective performance in the workplace. Competence is defined as a
combination of skills, as well as knowledge and understanding.
NOS have a variety of important uses including recruitment and selection, competence
assessment, training design and delivery, drawing up person specifications and job
descriptions, and in some cases form the starting point for the development of vocational
qualifications.
A set of NOS is presented as a ‘suite’ – relating to a particular business area or occupation.
This suite of NOS is for Anti-money Laundering (AML) and Countering Terrorist
Financing (CTF).
What is included within these National Occupational Standards?
There are 20 units within this suite of NOS, and each unit comprises the following:

Title – this explains the key competence for the unit.

Overview – this describes what the unit is about and what it covers.

Performance – lists the critical functions that are required in order to meet the standard
of competence outlined in the title and overview.

Knowledge and Understanding – underpin the performance statements – i.e. what you
need to know to be considered competent.
Terminology and language in these NOS
These NOS aim to contain terminology in current use, or at least recognisable to those
working in Anti-money Laundering and Countering Terrorist Financing roles. However, in
order to ‘future proof’ the NOS, the Knowledge and Understanding section of each unit
includes broad reference only to legislation and regulations etc, rather than specific references
which may be superseded or otherwise become outdated within the life of the NOS.
The use of such language also helps the NOS to be used within an international context. As
such, where reference within units is made to Anti-money Laundering and Countering Terrorist
Financing ‘measures’, this term encompasses all required policies, procedures and systems
as well as the requirement for regulated organisations to apply enhanced customer due
diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined
situations and in any other situations which can present a higher risk of Money Laundering or
Terrorist Financing.
Reference has also been made to ‘law enforcement authorities’ which term should be
extended (where appropriate) to all jurisdictions which have control over your organisation,
including regulatory, statutory, legal, investigating, licensing, issuing and supervisory
authorities.
2
The ‘pick and mix’ approach in using these NOS
It is important to recognise that very few people will carry out all of the functions described in
any full suite of NOS. In addition, many of the functions / those carrying them out will vary
dependent on the size of the organisation.
NOS are designed so that a ‘pick and mix’ approach can be used to develop the job
description, training programme, etc. Each user should select the appropriate combination of
Performance and Knowledge and Understanding statements from across the units. To assist
in this process, the NOS units have been grouped under the following categories.

Research your organisation and its requirements to help inform an Anti-money
Laundering and Countering Terrorist Financing policy for your organisation

Develop and monitor Anti-money Laundering and Countering Terrorist Financing controls
in your organisation

Support the staff in your organisation to comply with Anti-money Laundering and
Countering Terrorist Financing requirements

Maintain an effective relationship with relevant external bodies and respond to requests
on consultations

Identify and deal with non-compliant activity in your organisation
‘Signposting’ other relevant NOS
There is a close relationship between these NOS and the NOS for Compliance, which have
been developed separately by the FSSC. These can be accessed via www.fssc.org.uk
The following NOS, also developed by the FSSC and available at the above website address,
are a useful resource.

National Occupational Standards for Countering Financial Crime

National Occupational Standards for Internal Audit

National Occupational Standards for Risk Management for the Financial Sector
In addition, Skills for Justice are the Sector Skills Council responsible for the justice and
community safety sector, and they have developed NOS including the competences required
for presenting information to courts or other hearings. The website address for Skills for
Justice is www.skillsforjustice.com
Core knowledge underpinning roles in Anti-money Laundering and Countering
Terrorist Financing
The following Core knowledge statements have been identified by industry practitioners as
underpinning effective performance in Anti-money Laundering and Countering Terrorist
Financing roles, and they should be used in conjunction with these NOS.
3
The financial services industry and the regulatory environment
1.
The purpose and structure of the financial services industry, including the main types of
institution and organisation
2.
Consideration of international regulation and how this impacts on your organisation
Anti-money Laundering and Countering Terrorist Financing considerations
1.
The reasons why money is laundered, and how Money Laundering fits within the wider
context of financial crime – including Terrorist Financing
2.
Anti-money Laundering and Terrorist Financing methodology and terminology, including
bribery and corruption
3.
Stages in the Money Laundering and Terrorist Financing processes, including (but not
limited to) placement, layering and integration
4.
How to monitor customer activity and identify unusual or suspicious activity
5.
The vulnerabilities of different financial services products and services to exploitation by
money launderers
6.
Primary legislation defining and criminalising the activities which are deemed to constitute
Money Laundering and Terrorist Financing in the jurisdiction concerned; secondary
legislation and Anti-money Laundering and Terrorist Financing laws, measures, codes of
practice, orders and relevant industry guidance
7.
National and international bodies that exist to combat Money Laundering and Terrorist
Financing, e.g. the Financial Action Task Force (FATF)
Anti-money Laundering and Countering Terrorist Financing roles
1.
The types of activity that a Money Laundering Reporting Officer (MLRO) / Nominated
Officer should be undertaking, and how to prioritise these
2.
The importance of the Anti-money Laundering and Countering Terrorist Financing
function being able to act as an independent adviser to the organisation
3.
The importance of documenting the Anti-money Laundering and Countering Terrorist
Financing function, and the role and responsibilities of the MLRO / Nominated Officer
4.
How to encourage managers and staff to comply with Anti-money Laundering and
Countering Terrorist Financing measures, and laws
5.
The importance of providing regular and accurate reports to management and / or the
board on Anti-money Laundering and Countering Terrorist Financing matters
6.
The importance of adopting a risk-based and proportionate approach to Anti-money
Laundering and Countering Terrorist Financing where it is permitted to apply it in your
jurisdiction
7.
What other control and risk functions you must work with to manage Money Laundering
and Terrorist Financing risks
8.
Existing and emerging Money Laundering typologies and the importance of keeping upto-date with Anti-money Laundering and Countering Terrorist Financing legislation and
guidance
Ensuring your organisation complies with Anti-money Laundering and Countering
Terrorist Financing Requirements
4
1.
The legal entity structure of your organisation
2.
The importance of an effective Anti-money Laundering and Countering Terrorist
Financing culture within your organisation, promoting awareness that these are the
responsibility of all staff
3.
The benefits to your firm of ethical business conduct, and how to promote this within the
organisation
4.
What products and services are supplied by your organisation, and the types of clients
that your organisation deals with
5.
The strategic plans in place for your organisation
6.
What kind of business your organisation is registered to undertake
Behaviours underpinning roles in Anti-money Laundering and Countering Terrorist
Financing
The following Behaviours have been identified by industry practitioners as underpinning
effective performance in Anti-money Laundering and Countering Terrorist Financing roles, and
they can be used in conjunction with these NOS.
Communicating

You select communication styles that are appropriate to your audience and your message

You understand and respect the limitations that client and commercial confidentiality may
place on your communications

You present information clearly, concisely, accurately, and in a manner that promotes
understanding

You make appropriate information and knowledge available to those who need it and are
entitled to have it

You explain complex matters in clear language

You identify the information needs of colleagues, clients and others
5
Influencing

You reflect on your performance and seek constantly to improve

You develop supportive networks of individuals and organisations

You understand the needs and motivations of others

You are able to make a critical evaluation of arguments, assumptions, concepts and data,
and to challenge constructively the status quo

You identify and explain the benefits to others of the actions you propose to take

You seek to build consensus around the objectives you are pursuing

You deploy a range of appropriate influencing skills and strategies
Problem solving and decision making

You have a clear understanding of the extent and limits of your authority to take decisions

You have an awareness of the consequences, implications and risks of courses of action
you propose

You have a clear understanding of the legal and regulatory and commercial environments
within which decisions have to be taken

You do not shirk from proposing or implementing a course of action you believe to be
correct, because it may be difficult or unpopular

You show integrity, fairness and consistency in your decision making

You propose courses of action that are timely, appropriate and achievable
A ‘pick and mix’ approach should again be used for the inclusion of Behaviours in job
descriptions, training programmes etc, and further guidance is available on the FSSC’s
website, at www.fssc.org.uk.
6
National Occupational Standards for Anti-money Laundering and Countering Terrorist Financing
Research your organisation and its requirements to help inform an Anti-money Laundering and Countering Terrorist Financing policy
AML1 Assess and mitigate the compliance risks relevant to your organisation
AML2 Identify the implications of Anti-money Laundering and Countering Terrorist Financing measures for the business conducted by your organisation
AML3 Gather and disseminate information about Anti-money Laundering and Countering Terrorist Financing requirements in your organisation
8
9
10
Develop and communicate an Anti-money Laundering and Countering Terrorist Financing policy for your organisation
AML4 Identify improvements to the implementation of Anti-money Laundering and Countering Terrorist Financing measures within your organisation
AML5 Design an Anti-money Laundering and Countering Terrorist Financing policy for your organisation
AML6 Communicate and implement your Anti-money Laundering and Countering Terrorist Financing policy within your organisation
AML7 Assist in developing the compliance culture of your organisation
11
12
13
14
Develop and monitor Anti-money Laundering and Countering Terrorist Financing controls in your organisation
AML8 Design and oversee procedural controls at your organisation to monitor Money Laundering and Terrorist Financing risks
AML9 Report progress in securing effective Anti-money Laundering and Countering Terrorist Financing outcomes in your organisation
AML10 Ensure that staff at your organisation comply with Anti-money Laundering and Countering Terrorist Financing measures
15
16
17
Support the staff in your organisation to comply with Anti-money Laundering and Countering Terrorist Financing requirements
AML11 Develop an Anti-money Laundering and Countering Terrorist Financing reference guide for your organisation
AML12 Advise and guide staff in your organisation on Anti-money Laundering and Countering Terrorist Financing
AML13 Consider and advise on the Money Laundering and Terrorist Financing implications of new business strategies at your organisation
AML14 Plan and deliver Anti-money Laundering and Countering Terrorist Financing training for your organisation
18
19
20
21
Maintain an effective relationship with relevant external bodies and respond to requests on consultations
AML15 Plan, develop and maintain an effective relationship strategy with relevant external bodies
AML16 Respond to requests to your organisation to contribute to consultations
AML17 Handle requests for financial information from enforcement agencies
22
23
24
Identify and deal with non-compliant activity in your organisation
AML18 Design and monitor an internal reporting system for suspicious transactions and activities
AML19 Identify, investigate and resolve non-compliant activity within your organisation
AML20 Report suspicious financial activity to law enforcement agencies
25
26
27
7
AML1 Assess and mitigate the compliance risks relevant to your organisation
Overview
This unit is about assessing the probability and impact of compliance breaches occurring in your organisation, and completing a risk assessment of external and
internal threats or events. You must identify any gaps in your information about the compliance risks faced by your organisation. You must mitigate the risks
identified in the risk assessment, ensuring that they are proportionate, and you must review your risk assessment at regular, agreed intervals and when specific
events may affect the assessment.
Performance
Knowledge and Understanding
AML1/01 Assess the probability and impact of compliance breaches occurring
in your organisation
1.
Methods of developing a compliance risk assessment
2.
Where to find information about the compliance risks faced by your
organisation
3.
Why it is important that compliance risk mitigation is proportionate to the
risks posed
4.
When you should review the compliance risk assessment
5.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML1/02 Determine the jurisdictional scope of the legal and regulatory
environment in which your firm operates
AML1/03 Complete a compliance risk assessment of your organisation that
takes into account external and internal events or threats
AML1/04 Assess the compliance risks that are external to your organisation but
which directly or indirectly affect your organisation’s business or
control risks
AML1/05 Identify any gaps in the information you have about the compliance
risks faced by your organisation and locate this information
AML1/06 Develop a compliance risk mitigation programme to address issues
identified by the compliance risk assessment
AML1/07 Ensure the compliance risk mitigation programme is proportionate to
the risks posed, in terms of their impact and probability
AML1/08 Review the compliance risk assessment at regular, agreed intervals
and when specific events may affect the assessment
8
AML2 Identify the implications of Anti-money Laundering and Countering Terrorist Financing measures for the business conducted by
your organisation
Overview
This unit is about identifying the law enforcement authorities which have control over your organisation and the measures which they can enforce, and assessing
how these can impact on the policies and procedures of your organisation. You must determine the supervisory requirements to ensure compliance, identifying the
required resources, and also identify the consequences of non-compliance. You must report your assessment of the implications of measures on your organisation
to the appropriate people in it.
Performance
Knowledge and Understanding
AML2/01 Identify the law enforcement authorities and the measures with which
your organisation must comply, and the consequences of noncompliance
1.
The nature of the business conducted by your organisation
2.
The practices / procedures by which business is conducted within your
organisation
3.
The consequences of non-compliance with measures
4.
The resourcing implications of compliance requirements
5.
How measures affect different parts of the business
6.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML2/02 Assess how the rules specified by relevant law enforcement
authorities relate to the practices / procedures in which business is
conducted by your organisation
AML2/03 Identify how the implications of measures might impact on the ways in
which business is conducted by your organisation
AML2/04 Determine the supervisory requirements needed to confirm compliant
activity within your organisation
AML2/05 Identify the resources which are needed to fulfil the law enforcement
requirements within your organisation
AML2/06 Report your assessment of the implications of measures to the
appropriate people within your organisation
9
AML3 Gather and disseminate information about Anti-money Laundering and Countering Terrorist Financing requirements in your
organisation
Overview
This unit is about identifying and accessing sources of information about Anti-money Laundering and Countering Terrorist Financing requirements relevant to your
organisation, and disseminating this information to other departments. You must maintain continuing professional development on new trends in measures, Money
Laundering and Terrorist Financing typologies, and communicate these in a timely manner. You must be able to improve the dissemination of information in
response to feedback and evaluation from your colleagues.
Performance
Knowledge and Understanding
AML3/01 Identify and access reliable sources of information about financial
crime and its prevention relevant to your organisation
1.
How and from where to obtain information
2.
The importance of maintaining relevant continuing professional
development
3.
Why it is important to disseminate information
AML3/03 Determine the methods of disseminating information across your
organisation, establishing systems to monitor and evaluate their
effectiveness
4.
To whom information should be disseminated
5.
What internal mechanisms exist for disseminating information
AML3/04 Disseminate relevant information to other departments in your
organisation
6.
Why it is important to encourage and obtain feedback and to respond
positively to this feedback
AML3/05 Encourage feedback from recipients on the clarity, completeness and
usefulness of information, establishing systems to monitor the
effectiveness of its dissemination
7.
What records must be kept to demonstrate dissemination of information
8.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML3/02 Maintain continuing professional development on new trends in
measures, Money Laundering and Terrorist Financing typologies, and
provide updates to appropriate staff across your organisation
AML3/06 Improve the dissemination methods in response to feedback and
evaluation received
10
AML4 Identify improvements to the implementation of Anti-money Laundering and Countering Terrorist Financing measures within your
organisation
Overview
This unit is about establishing measures for evaluating the implementation of measures within your organisation. You must collect and assess information and use
the findings to identify opportunities for your organisation to improve. As part of your evaluation you must compare how your organisation implements measures
with other similar businesses, and communicate suggested improvements. You must also support senior management in the establishment of a culture of
continuous improvement across your organisation.
Performance
Knowledge and Understanding
AML4/01 Establish valid and appropriate measures for evaluating the
implementation of measures within your organisation
1.
The importance of establishing and applying valid and appropriate
measures for evaluating the implementation of measures
AML4/02 Collect and assess information about the effectiveness of
implementation of measures within your organisation, and use the
findings to identify opportunities to improve
2.
How to establish systems for collecting and assessing information on the
implementation of measures, and how to use the findings to identify
opportunities where improvements can be made
AML4/03 Provide support and guidance to senior management within your
organisation for the establishment of a culture where colleagues come
forward with potential and actual implementation problems and
suggested opportunities for improvement
3.
Ways of comparing how your organisation implements measures against
others
4.
The role of senior management in developing a culture that continually
improves
5.
The importance of finding out the causes and effects of problems and
changes
6.
Ways of measuring the effect of improvements
7.
The range of information sources and techniques for collecting information
8.
Relevant changes and developments in your sector
9.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML4/04 Compare how your organisation implements measures with other
similar businesses, and recommend improvements based on the
findings
AML4/05 Share the knowledge and understanding of how improvements have
been implemented across your organisation
AML4/06 Ensure that improvements made reflect the requirements of your
organisation and the applicable measures
11
AML5 Design an Anti-money Laundering and Countering Terrorist Financing policy for your organisation
Overview
This unit is about developing an Anti-money Laundering and Countering Terrorist Financing policy for your organisation, which is realistic and achievable. You must
identify how different staff in your organisation will comply and the policies required – including client confidentiality, responsibility and accountability, training,
monitoring and evaluation. You must help your colleagues to understand and support the policy, adjusting plans when necessary, and identifying areas for
improvement. You must also determine how your organisation will deal with non-compliance.
Performance
Knowledge and Understanding
AML5/01
Identify the enforcement bodies and the measures for Money
Laundering and Terrorist Financing prevention with which your
organisation must comply
1.
How to formulate a robust Anti-money Laundering and Countering Terrorist
Financing policy and procedures, and why it is important to do so
AML5/02
Define clearly the responsibilities and accountabilities of staff in your
organisation for Money Laundering and Terrorist Financing
prevention
2.
Where to find information that can help inform the Anti-money Laundering
and Countering Terrorist Financing policy
3.
The responsibilities of senior management and the board for Anti-money
Laundering and Countering Terrorist Financing
4.
Measures and methods for monitoring and evaluating performance against
plans
5.
Where to find information that can aid monitoring and evaluation
6.
The importance of monitoring compliance with the policy and reporting
regularly on the organisation’s performance with regard to Anti-money
Laundering and Countering Terrorist Financing
7.
The importance of developing strategic plans which support the Anti-money
Laundering and Countering Terrorist Financing policy
AML5/03
AML5/04
AML5/05
Determine how client confidentiality will be protected within the
constraints of Money Laundering and Terrorist Financing reporting
requirements, and how the acceptance of business will comply with
know your client and risk assessment procedures
Determine the practical actions to implement an Anti-money
Laundering and Countering Terrorist Financing policy
Develop an Anti-money Laundering and Countering Terrorist
Financing policy which is based on accurate research and which is
compliant with all relevant legal requirements, whilst taking into
account any organisational constraints including existing and
anticipated resources
AML5/06
Ensure that the policy is underpinned by a clear vision and values
8.
AML5/07
Identify and implement methods and measures for monitoring and
evaluating compliance with Anti-money Laundering and Countering
Terrorist Financing policies, and determine how your organisation will
deal with non-compliance
How to recognise failures to comply with the Anti-money Laundering and
Countering Terrorist Financing policy and take appropriate remedial action
9.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML5/08
Ensure that your organisation’s strategic plans are consistent with the
Anti-money Laundering and Countering Terrorist Financing policy
AML5/09
Agree realistic and achievable targets and timescales for
12
implementation
13
AML6 Communicate and implement your Anti-money Laundering and Countering Terrorist Financing policy within your organisation
Overview
This unit is about how to effectively communicate and implement your Anti-money Laundering and Countering Terrorist Financing policy. Depending on the size of
your organisation, this may be done in conjunction with the Human Resources department. Your Anti-money Laundering and Countering Terrorist Financing policy
must be underpinned by an implementation plan which is realistic and achievable and you must help the people involved to understand and support it. You must
understand the vision and values underpinning Anti-money Laundering and Countering Terrorist Financing, and you identify good practice examples for your
organisation.
Performance
Knowledge and Understanding
AML6/01
Promote the benefits of the policy to senior management in a way
that encourages constructive debate, facilitates decision making and
secures organisational support
1.
How to formulate an Anti-money Laundering and Countering Terrorist
Financing policy and procedures, and why it is important to do so
2.
AML6/02
Outline the business implications of introducing the Anti-money
Laundering and Countering Terrorist Financing policy, inviting senior
managers to ask questions and provide feedback on it
Where to find information that can help inform the Anti-money Laundering
and Countering Terrorist Financing policy
3.
The responsibilities of senior management and the board for Anti-money
Laundering and Countering Terrorist Financing
4.
Measures and methods for monitoring and evaluating performance against
plans
5.
Where to find information that can aid monitoring and evaluation
6.
Identify the approach to the education, training and awareness
maintenance of all staff and management
The importance of monitoring Anti-money Laundering and Countering
Terrorist Financing with the policy and reporting regularly on the
organisation’s performance with regard to Anti-money Laundering
7.
Explain the benefits of Anti-money Laundering and Countering
Terrorist Financing policy clearly and by reference to factual evidence
The importance of developing strategic plans which support the Anti-money
Laundering and Countering Terrorist Financing policy
8.
The effect and application of dispensations and waivers
How to recognise failures to comply with the Anti-money Laundering and
Countering Terrorist Financing policy and take appropriate remedial action
AML6/03
Ensure that the Anti-money Laundering and Countering Terrorist
Financing responsibilities with regard to the policy are understood,
providing support where this is not the case
AML6/04
Develop an implementation plan for the Anti-money Laundering and
Countering Terrorist Financing policy that includes the business
benefits by reference to factual evidence
AML6/05
AML6/06
AML6/07
Identify good practice and areas for improvement and communicate
these to colleagues and management
9.
AML6/08
Ensure that staff have a clear understanding of the measures that
apply to them and their work, and the importance of complying with
them
10. Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML6/09
Explain, where appropriate to your organisation and the products and
services offered, how dispensations and waivers work and are
14
applied
15
AML7 Assist in developing the compliance culture of your organisation
Overview
This unit is about assisting in determining and agreeing the values and assumptions that encourage behaviour which is consistent with your organisation’s overall
vision and strategy for compliance, Anti-money Laundering and Countering Terrorist Financing. This will be done in conjunction with the senior management at your
organisation, as appropriate. You must communicate agreed values to your colleagues, across your organisation, and ensure that policies, programmes and
systems support agreed compliance values. You must continuously monitor and adjust values and assumptions, and the ways they are applied.
Performance
Knowledge and Understanding
AML7/01
Determine and agree values and assumptions that encourage
behaviour which is consistent with your organisation’s overall vision
and strategy for compliance and countering financial crime
1.
The concept of the compliance culture as applied to organisations
2.
The importance of values in underpinning individual and organisational
performance
AML7/02
Communicate agreed values to people across your organisation and
motivate them to put these into practice
3.
Internal and external factors that influence the compliance culture
4.
AML7/03
Ensure that senior management recognise the importance of making
compliance part of the culture of your organisation
Different types of compliance culture and the relationship between
compliance culture, strategy and performance
5.
AML7/04
Put in place policies, programmes and systems to support agreed
values
The principles and methods of managing culture change within
organisations
6.
AML7/05
Counter messages that conflict with agreed values
Dominant types of compliance culture in your sector and their strengths and
limitations
AML7/06
Continuously monitor and adjust values and assumptions, and the
ways they are applied
7.
Your organisation’s vision and strategy
8.
Your organisation’s current organisational and compliance culture
9.
Values, assumptions and behaviours that are consistent and inconsistent
with your vision and strategy
10. The needs and interests of key stakeholders
11. Effective methods of communicating values, and supporting the way they
are applied in your organisation
12. Effective ways of dealing with messages and behaviour that conflict with
agreed values and assumptions
13. Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
16
AML8 Design and oversee procedural controls at your organisation to monitor Money Laundering and Terrorist Financing risks
Overview
This unit is about designing and implementing procedural controls to proactively check for Money Laundering and Terrorist Financing risks at your organisation,
which must be flexible and responsive to changes in Money Laundering and Terrorist Financing typologies. You must identify the resources needed to implement
the procedural controls and determine the frequency with which Money Laundering and Terrorist Financing risks should be monitored, as well as assess the
efficiency of the controls on a regular basis. You must report all areas which have been identified by the procedural controls as needing improvement to those
responsible.
Performance
Knowledge and Understanding
AML8/01 Design, agree and implement robust procedural controls to
proactively check for Money Laundering and Terrorist Financing risks
at your organisation, which can detect or react to breaches in
measures and which are flexible and responsive to changes in Money
Laundering and Terrorist Financing typologies
1.
The importance of designing and implementing Anti-money Laundering and
Countering Terrorist Financing procedural controls, which protect the
interests of the organisation and its different stakeholders
2.
The specific issues which the procedural controls should address, including
risk assessment, standards of Customer Due Diligence and subsequent
monitoring, training, reporting and liaison with external law enforcement
agencies
3.
The importance of planning for contingencies
4.
Internal issues which should inform the procedural controls, such as
methods of obtaining and storing customer identity data and arrangements
for sanctions lists checks, procedures for monitoring client activity, risk
categorisation of customers and products, transaction types and other data
issues
5.
Who your colleagues and other key stakeholders are, and the resources
needed to implement procedural controls
6.
The importance of monitoring the effectiveness of the procedural controls
systems and the reporting methods to use
7.
The importance of updating the procedural controls following changes to
rules, measures, internal changes and new products
8.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML8/02 Identify the resources needed to implement the procedural controls,
including assigning them to people with formal responsibility for Antimoney Laundering and Countering Terrorist Financing
AML8/03 Determine the frequency with which Money Laundering and Terrorist
Financing risks should be monitored
AML8/04 Identify possible reasons when the procedural controls may fail to
meet evaluation criteria
AML8/05 Assess the efficiency of the procedural controls on a regular basis to
identify potential shortcomings and improvements, using sufficient
evidence which takes account of all relevant factors
AML8/06 Report all areas which have been identified by the procedural controls
as needing improvement to those responsible for implementing them,
and confirm that they have been done
17
AML9 Report progress in securing effective Anti-money Laundering and Countering Terrorist Financing outcomes in your organisation
Overview
This unit is about reporting on your organisation’s Anti-money Laundering and Countering Terrorist Financing activities and compliance with law enforcement
authorities. You must be able to collate and analyse relevant information and identify any remedial action required, as well as those who are responsible for the
action. You must be able to assess the level of risk experienced by your organisation and assess the adequacy of its Anti-money Laundering and Countering
Terrorist Financing controls in place.
Performance
Knowledge and Understanding
AML9/01 Determine the purpose of the report and the intended audience
1.
The importance of generating Management Information on suspicious
activity report trends and weaknesses
2.
The importance of generating Management Information on the
effectiveness of the Anti-money Laundering and Countering Terrorist
Financing systems that are in place in your organisation
3.
How to create plans to remediate any weaknesses identified
4.
How to use analytical techniques to evaluate information
5.
Any requirements from law enforcement authorities for the Anti-money
Laundering and Countering Terrorist Financing annual report
6.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML9/02 Identify and collate the information required for the report
AML9/03 Explain the responsibilities of senior management in relation to Antimoney Laundering and Countering Terrorist Financing activities
AML9/04 Present an analysis of the organisation’s compliance with the
requirements of law enforcement authorities
AML9/05 Identify any remedial action required to meet any identified
weaknesses, and the timescales for this action
AML9/06 Identify those responsible for ensuring remedial action takes place
within identified timescales
AML9/07 Assess the level of risk experienced by your organisation in relation to
any Anti-money Laundering and Countering Terrorist Financing
deficiencies identified by the report
AML9/08 Assess the adequacy of the Anti-money Laundering and Countering
Terrorist Financing controls in place
AML9/09 Prepare the report and submit it to those requiring it in a timely
manner and in accordance with the requirements of law enforcement
authorities, where applicable
18
AML10 Ensure that staff at your organisation comply with Anti-money Laundering and Countering Terrorist Financing measures
Overview
This unit is about ensuring staff in your organisation have a clear understanding of Anti-money Laundering and Countering Terrorist Financing, and the measures
that apply to them. You must support staff in their efforts to adhere to measures, ensuring that new staff or those moving to new roles are assessed as competent.
You must assist in developing a climate of openness about meeting or not meeting the requirements for compliance and take prompt action to identify and correct
any failures in meeting the requirements. You must keep accurate and complete records of training and competence, and of any failures to comply with measures.
Performance
Knowledge and Understanding
AML10/01
Monitor the way staff comply with measures at regular and
appropriate intervals
1.
The sensitivities of monitoring the work of staff and the importance of being
impartial and independent
AML10/02
Identify and ensure the provision of appropriate training where staff
need support in adhering to measures
2.
The measures and methods which can be used for monitoring and
evaluating performance
AML10/03
Ensure that relevant staff have a clear understanding of Anti-money
Laundering and Countering Terrorist Financing measures, how
these apply to them and their work, and the importance of
complying with them
3.
The timescales and procedures for monitoring different types of staff
4.
Why it is important to encourage a climate of openness about compliance
with Anti-money Laundering and Countering Terrorist Financing measures
AML10/04
Ensure that relevant records of training and competence are
maintained for all employees for the required length of time
5.
AML10/05
Assist in developing a climate of openness about meeting or not
meeting the requirements for Anti-money Laundering and
Countering Terrorist Financing
Why it is important to identify trends or patterns in failures to meet
requirements and how to deal with them
6.
What records need to be kept
7.
Who to report information on compliance to
AML10/06
Identify and take prompt action to correct any failures to meet the
Anti-money Laundering and Countering Terrorist Financing
requirements
8.
AML10/07
Identify reasons for requirements not being met and any trends or
patterns emerging
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML10/08
Keep accurate and complete records of any failures to comply with
measures and report this information to the appropriate authority
when necessary
19
AML11 Develop an Anti-money Laundering and Countering Terrorist Financing reference guide for your organisation
Overview
This unit is about developing an Anti-money Laundering and Countering Terrorist Financing reference guide for your organisation. This may take the form of a
handbook, but it could be available as an online resource. You must establish the role and scope of the reference guide and identify the measures that need to be
included, explaining the roles and responsibilities for monitoring the Anti-money Laundering and Countering Terrorist Financing procedures in place. You must
review and approve the contents of the completed reference guide and ensure that it is regularly reviewed. You must also ensure that the staff within your
organisation know how to access it, and that they review its content on a regular basis.
Performance
Knowledge and Understanding
AML11/01
1.
The scope of the Anti-money Laundering and Countering Terrorist
Financing reference guide for your organisation
2.
Which measures need to be included – such as Sanctions and Treasury
Directives
3.
The operating systems and procedures which need to incorporate Antimoney Laundering and Countering Terrorist Financing requirements
4.
Why it is important to specify the monitoring methods for Anti-money
Laundering and Countering Terrorist Financing
5.
How to identify and communicate the roles and responsibilities of staff for
Anti-money Laundering and Countering Terrorist Financing
6.
The importance of reviewing and updating the reference guide and when to
do so
AML11/02
AML11/03
Establish the role and scope of the Anti-money Laundering and
Countering Terrorist Financing reference guide and determine who
will contribute to its content, ensuring that they understand their
role in this regard
Identify the relevant operating systems and procedures in place in
your organisation and cross-reference them to the applicable Antimoney Laundering and Countering Terrorist Financing procedures
in place
Ensure that the importance of integrating Anti-money Laundering
and Countering Terrorist Financing requirements into operating
systems and procedures is understood by all applicable staff in
your organisation
AML11/04
Identify the measures that need to be included in the reference
guide, explaining the roles and responsibilities for complying with
procedures and the methodology for checking this
AML11/05
Review and approve the contents of the completed reference guide
7.
AML11/06
Ensure that the reference guide is regularly reviewed and that any
relevant changes in Money Laundering and Terrorist Financing
typologies are incorporated immediately into operating systems and
procedures
The need to ensure that the reference guide is available and accessible to
staff within your organisation
8.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML11/07
Create awareness of the reference guide within your organisation,
ensuring that all staff know how to access it and that they review its
content on a regular basis
AML11/08
Ensure that senior management understand the importance of all
20
relevant staff following the reference guide
21
AML12 Advise and guide staff in your organisation on Anti-money Laundering and Countering Terrorist Financing
Overview
This unit is about encouraging staff to seek advice and guidance on Money Laundering and Terrorist Financing prevention matters. You must establish an ‘opendoor’ procedure for staff to seek advice and respond positively and helpfully to requests. You must determine the priority of requests in relation to other scheduled
activities or other requests for advice and guidance, and you must also encourage staff to provide feedback on the advice and guidance they have received.
Performance
Knowledge and Understanding
AML12/01
Ensure that all staff know and understand the procedures for
requesting advice and guidance on Anti-money Laundering and
Countering Terrorist Financing matters
1.
The procedures for requesting advice and guidance, and how to
disseminate this information through different channels
AML12/02
Establish an ‘open-door’ policy for staff to seek clarification on the
prevention of Money Laundering and Terrorist Financing
2.
Why it is important to encourage a climate of openness about Anti-money
Laundering and Countering Terrorist Financing
AML12/03
Encourage staff to seek advice and guidance on dealing with
potential financial crime, Money Laundering or Terrorist Financing
which may affect their work
3.
The types of information about which staff may require advice and guidance
4.
Where to locate information to advise and guide staff
5.
How to prioritise your work and requests for advice, guidance and
information
AML12/04
Respond positively and helpfully to requests for advice and
guidance within an appropriate timescale
AML12/05
Determine the priority of requests in relation to other scheduled
activities or other requests for advice and guidance
6.
Why it is important to encourage and obtain feedback and to respond
positively to this feedback
AML12/06
Encourage staff to provide feedback on the usefulness of the
advice and guidance they have received
7.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
22
AML13 Consider and advise on the Money Laundering and Terrorist Financing implications of new business strategies at your
organisation
Overview
This unit is about knowing what your organisation’s current and emerging business strategies are, evaluating any potential Money Laundering and Terrorist
Financing risks, and ensuring their compliance in light of measures. Emerging business strategies may include new product launches, new services introduced by
your organisation, or extension into new markets. You must be able to identify the Money Laundering and Terrorist Financing risks of business strategies and
advise the relevant people of those risks and any action that should be taken. It may be necessary to advise law enforcement authorities of significant changes to
business strategies.
Performance
Knowledge and Understanding
AML13/01
Identify the measures with which your organisation must comply
1.
AML13/02
Encourage managers of business units to keep you updated on
your organisation’s product development cycle, and to consider
potential Money Laundering and Terrorist Financing risks in current
and emerging business strategies
Why there may be Money Laundering and Terrorist Financing risks in new
and emerging business strategies – including new product launches and
new markets
2.
Why consideration of Money Laundering and Terrorist Financing risks in
business strategies should be an inherent part of decision making
3.
Who should be advised of the Anti-money Laundering and Countering
Terrorist Financing implications of business strategies and any changes to
plans and procedures
4.
Why it is important to keep senior management advised about the
organisation’s Anti-money Laundering and Countering Terrorist Financing
policy
5.
Why it is important to support senior management in their responsibilities
within the Anti-money Laundering and Countering Terrorist Financing policy
6.
When it is necessary to advise law enforcement authorities of changes to
business strategies
7.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML13/03
Evaluate business strategies in the light of the relevant measures
AML13/04
Assess the Money Laundering and Terrorist Financing risks of
business strategies to the organisation
AML13/05
Advise relevant people of any identified risks and their implications
for the business
AML13/06
Advise relevant people of any necessary changes to plans and
procedures to meet the Anti-money Laundering and Countering
Terrorist Financing requirements
AML13/07
Discuss and review your organisation’s Anti-money Laundering and
Countering Terrorist Financing obligations and possible reasons for
failing to adhere to them with managers and staff in all relevant
departments
AML13/08
Where necessary, advise law enforcement authorities of significant
changes to business strategies
23
AML14 Plan and deliver Anti-money Laundering and Countering Terrorist Financing training for your organisation
Overview
This unit is about delivering Anti-money Laundering and Countering Terrorist Financing training for your organisation. You must be able to identify the knowledge
and competences your organisation needs to meet Anti-money Laundering and Countering Terrorist Financing requirements and to identify any priority areas for
training. You must consider different ways of delivering training, including the resources needed, and identify systems to review and monitor the training. If external
trainers are going to be used, you must give them clear and accurate information about the Anti-money Laundering and Countering Terrorist Financing requirements
of your organisation and agree with them the learning objectives to be covered. A risk-based approach must be used to identify the training requirements of different
levels of staff within your organisation. Ensure regulatory requirements on training are met and complied with.
Performance
Knowledge and Understanding
AML14/01
Identify the purpose and necessary outcomes of Anti-money
Laundering and Countering Terrorist Financing training, focused on
the abilities and competences which the organisation needs to
meet its compliance requirements
1.
How to identify a range of possible Anti-money Laundering and Countering
Terrorist Financing training outcomes that support the organisation’s
strategy
AML14/02
Collect information on the existing levels of Anti-money Laundering
and Countering Terrorist Financing knowledge and experience of
those working for the organisation
2.
The need to collect information on the levels of Anti-money Laundering and
Countering Terrorist Financing knowledge within your organisation
3.
How to determine and prioritise staff training requirements using a riskbased approach
4.
The different ways of delivering training and their relevance to the needs of
the organisation and individuals
5.
The various technology and e-learning methods available, and their
relevance to compliance training
AML14/03
Determine the training requirements of different levels of staff in
your organisation using a risk-based approach
AML14/04
Produce specific aims and objectives for Anti-money Laundering
and Countering Terrorist Financing training sessions
AML14/05
Identify the resources needed to deliver Anti-money Laundering
and Countering Terrorist Financing training
AML14/06
Where external trainers are being used, give them clear and
accurate information about the Anti-money Laundering and
Countering Terrorist Financing requirements of your organisation
and agree with them the learning objectives to be covered
6.
What resources are needed to deliver training programmes and from where
to obtain them
7.
The information external trainers will need, and how and when to provide it
AML14/07
Identify any priority areas for Anti-money Laundering and
Countering Terrorist Financing training across the organisation
8.
Why it is important to encourage and obtain feedback and to respond
positively to this feedback
AML14/08
Consider different ways of structuring and delivering training,
including technology-based delivery and support
9.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
AML14/09
Seek feedback on the effectiveness of the training provided, and
24
adjust future training programmes accordingly
AML14/010 Ensure the regulatory obligations on AML training of staff have
been complied with
and safety, as they impact on your activities
10. How to measure the effectiveness of training
25
AML15 Plan, develop and maintain an effective relationship strategy with relevant external bodies
Overview
This unit is about identifying key contacts with relevant external bodies which are appropriate to your organisation’s current and future needs. These may include
regulatory bodies as well as law enforcement authorities. You must recognise the roles, responsibilities, interests and concerns of such bodies and provide them
with information to which they are entitled, whilst developing guidelines for the exchange of information, where appropriate. You must consider any potential conflict
between such bodies and your organisation and monitor and improve the effectiveness of relationships with these bodies, whilst also identifying potential new
relationships. You must also monitor wider developments to identify issues relevant to your relationships with these bodies.
Performance
Knowledge and Understanding
AML15/01
Identify and develop key contacts with relevant external bodies,
recognising their roles, responsibilities, interests and concerns
1.
The relevant external bodies which are appropriate to your organisation’s
current and future needs
AML15/02
Develop guidelines for exchanging information, where appropriate
2.
The responsibilities of a regulated firm or individual
AML15/03
Provide relevant external bodies with the information to which they
are entitled, advising them promptly of any difficulties in fulfilling
agreements or statutory requirements
3.
The benefits for individuals and organisations of developing and
maintaining key contacts with relevant external bodies
4.
Your organisation’s mission and values, policies and objectives
AML15/04
Consider any potential conflict between the interests of relevant
external bodies and your organisation’s objectives, values and
policies
5.
The principles of confidentiality and how to develop guidelines for
exchanging information between individuals and organisations
AML15/05
Monitor and review the effectiveness of relationships with relevant
external bodies to identify improvements and potential new
relationships
6.
The resources needed to meet communication requirements
7.
The responsibilities of a regulated firm or individual in reconciling any legal
or regulatory requirements for disclosure of information with client
confidentiality
8.
How to deal with potential conflicts of interests
9.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML15/06
Monitor wider developments to identify potential future issues of
relevance to your relationship with relevant external bodies
26
AML16 Respond to requests to your organisation to contribute to consultations
Overview
This unit is about establishing procedures for your organisation to respond to consultation requests from relevant external bodies. These consultations may be
seeking feedback or opinions from your organisation to make improvements or changes to Anti-money Laundering and Countering Terrorist Financing requirements
and practices. You must assess the implications of the proposed changes or improvements and compare these with current practices. You must allocate
responsibility for responding to appropriate staff, briefing them accordingly and checking the final draft response. You must also monitor the progress of the
proposed changes.
Performance
Knowledge and Understanding
AML16/01
Establish procedures for responding, if appropriate, to consultation
requests from relevant external bodies
1.
Who the relevant external bodies are
2.
AML16/02
Respond to consultation requests within appropriate timescales,
making representation to the organisation concerned if you cannot
meet the deadline
Where to check for information about requests for contributions to
consultations
3.
How to determine the importance of providing a response, including any
statutory responsibilities for a consultation
4.
What the implications of changes for your organisation are
5.
What barriers to improvements may exist
6.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML16/03
Assess the implications of the proposed changes or improvements
for your organisation, identifying any potential barriers
AML16/04
Assess the difference between the current and potential new
requirements and practices
AML16/05
Determine which decision makers within your organisation should
be involved in preparing a response to the consultation
AML16/06
Brief staff preparing the response on the importance of the issue to
your organisation, the priority assigned to preparing a response
and the timescales within which they should work
AML16/07
Check that the draft response addresses all the consultation
questions and presents a view consistent with your organisation’s
objectives, values and policies
AML16/08
When necessary, secure the authority of senior management to
submit the response
AML16/09
Seek information on the main consultation recommendations, and
monitor the progress of the proposed improvements
27
AML17 Handle requests for financial information from enforcement agencies
Overview
This unit is about making sure that requests for financial information from your organisation are made by a person or agency entitled to it, and that they are
accompanied by the correct paperwork or instructions. You must respond to valid requests within specified timescales and ensure that ‘tipping off’ does not occur.
You must store records securely and ensure that they are only available to authorised persons.
Performance
Knowledge and Understanding
AML17/01
Determine that the person or agency making a request for
information is entitled to it
1.
Which persons or agencies are entitled to make a request for information,
and the type of information they are entitled to
AML17/02
Ensure requests are accompanied by the correct paperwork or
instruction
2.
Any timescales – including by law – within which you must respond to a
request for information
AML17/03
Respond to requests with all pertinent information that falls within
the scope of the request
3.
The procedures to use to confirm that a request is from an authorised
person or agency
AML17/04
Respond to requests for information within specified timescales
4.
What paperwork / instructions are needed to support a request
AML17/05
Ensure that clients about whom information has been requested
are handled appropriately and that tipping-off, where proscribed
under the applicable legislation, does not occur
5.
How to determine what information falls within the scope of a request
6.
How to manage communications with clients about whom you have been
asked for information, and how to avoid ‘tipping-off’
7.
The appropriate safe storage of records and information
8.
What controls to use to avoid unauthorised access/release of information or
a breach of any restrictions imposed
9.
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML17/06
AML17/07
Store records and information about requests from enforcement
agencies securely and ensure that they are available only to
authorised persons
Take appropriate steps to avoid unauthorised access or release of
information or any breach of restrictions imposed
28
AML18 Design and monitor an internal reporting system for suspicious transactions and activities
Overview
This unit is about developing a system in your organisation for identifying and reporting suspicious transactions and activities, which is likely to take the form of a
suspicious activity report (SAR). Whilst frivolous reporting must be discouraged, you must ensure that staff appreciate the mandatory need for reporting suspicious
transactions and activities and the impact on the overall health of your organisation. You must deal with reports about suspicious transactions, analysing them and
determining the need for further action, and you need to keep secure records of all relevant information and of the evaluation process. Your system must ensure
that ‘tipping off’ does not occur.
Performance
Knowledge and Understanding
AML18/01
Identify the reporting lines for suspicious transactions and activities
1.
What the reporting lines are for staff
AML18/02
Design a system which will provide adequate evidence that a
suspicious transaction or activity has been reported, whilst
balancing the need to discourage frivolous or irresponsible
reporting
2.
Definitions of the subjective and objective tests of suspicion and the
importance of these, including how suspicion differs from speculation and
that proof of crime is not required
3.
AML18/03
Implement a process in the reporting system to ensure that
enquiries into clients do not result in ‘tipping off’
The difference between defensive and mandatory reporting of suspicions
and when each is required
4.
AML18/04
Ensure all staff realise they must raise a SAR whenever they
suspect criminal activity in a transaction, reminding them of the
continuing legal obligations with regard to the client concerned and
addressing any awareness issues that arise
What constitutes knowledge for the purposes of the criminal offence of
Money Laundering and Terrorist Financing
5.
How to encourage responsible reporting of suspicious transactions and
activities, and how to discourage frivolous reporting
6.
The strengths and weaknesses of suspicion-recognition systems
7.
How to evaluate internal reports of suspicious transactions and activities,
determining if the report has merit and should be externalised
8.
The documentation required by your organisation and by external law
enforcement agencies of your evaluations of internal reports
9.
Why the reports and your evaluation of them must be stored securely
AML18/05
AML18/06
Deal promptly with internal reports of suspicious activity received
from staff, determining if the report needs further investigation
Discus the report with relevant internal colleagues and managers to
elicit further information required to make a decision
AML18/07
Decide whether or not to externalise the report
AML18/08
Keep accurate, confidential and secure records of the evaluation
process which include all relevant information relating to the report
AML18/09
Provide information on the number of reports into suspicious
transactions and activities made by staff, and from which parts of
the organisation they originate
AML18/010 Provide feedback to relevant staff on the decisions regarding the
report into suspected suspicious transactions and activities, as
10. How to manage communications with clients who are suspected of Money
Laundering / Terrorist Financing, and their advisers
11. How to handle the risk of committing the ‘tipping off’ offence
12. Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
29
appropriate
30
AML19 Identify, investigate and resolve non-compliant activity within your organisation
Overview
This unit is about identifying activity within your organisation that is potentially non-compliant with the requirements of law enforcement authorities. You must also
encourage staff to bring suspicions of potentially non-compliant activity to the attention of compliance staff. You must assess the seriousness of an identified breach
and determine the compliance risk posed. You must identify and implement remedial action and make internal or external reports as appropriate. You must initiate
or recommend disciplinary action where necessary and identify and implement ways of avoiding recurrence of breaches.
Performance
Knowledge and Understanding
AML19/01
1.
What constitutes compliant behaviour
2.
How to identify potentially non-compliant behaviour
3.
How to identify the seriousness of non-compliant behaviour and respond
proportionately
4.
Who should be informed of non-compliant behaviour
AML19/02
Identify activity within your organisation that is potentially noncompliant with the requirements of law enforcement authorities,
and gauge the extent and context of the problem
Encourage staff within your organisation to bring suspicions of
activity that is potentially non-compliant with the requirements of
law enforcement authorities to the attention of appropriate staff
AML19/03
Assess the seriousness of an identified breach and respond
proportionately
5.
When and how to conduct an internal investigation into non-compliant
behaviour
AML19/04
Determine the compliance risk posed by an identified breach
6.
The importance of preventing the recurrence of non-compliant behaviour
AML19/05
Report the breach to the appropriate internal and external
authorities as soon as practicable
7.
When to take disciplinary action against employees
8.
What the record keeping requirements are
AML19/06
Initiate or recommend any necessary disciplinary action against
employees
9.
AML19/07
Keep accurate records of any non-compliant activity and any
remedial action taken or intended
Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML19/08
Identify and implement remedial action to deal with breaches in
measures or non-compliant activity within realistic timescales
AML19/09
Identify and implement ways of avoiding recurrence of breaches
31
AML20 Report suspicious financial activity to law enforcement agencies
Overview
This unit is about identifying an internal report into a suspicious transaction or activity as requiring onward transmission to external law enforcement agencies. You
must provide appropriate information to the enforcement agencies for them to evaluate the case further and you must maintain accurate records. You must also
ascertain from the enforcement agencies if your organisation may or may not proceed with a transaction and, if so, on what basis. You must respond to appropriate
orders of the court.
Performance
Knowledge and Understanding
AML20/01
Identify internal reports of suspicious transactions and activities
about which your evaluations have confirmed the need for referral
to law enforcement agencies
1.
How to determine whether an internal report of suspicious activity has merit
and should be reported to external law enforcement agencies
2.
AML20/02
Determine the client information which needs to be included in the
report to law enforcement agencies
The format of reports for law enforcement agencies and what information to
give them, including how to deal with requests for additional information
AML20/03
Complete the external Suspicious Activity Report (SAR) with
sufficient information and submit this to the law enforcement
agency within agreed timescales
3.
The documentation required of your evaluation of an internal report
4.
How to manage communications with law enforcement after an SAR has
been submitted
AML20/04
Report the reasons for your suspicions clearly and accurately and
determine any additional information which may be required to
contribute to or contextualise the reasons for the suspicion
5.
Constructive trusteeship and how to recognise and manage the risk of it
6.
Enforcement and discovery orders in civil cases and the response required
7.
How to proceed with client relationships and transactions once an SAR has
been made to law enforcement
8.
Analyse the consent of law enforcement to ascertain exactly what
has been consented to and your organisation’s ongoing obligations
to law enforcement
What to do when consent to proceed with client relationships and
transactions is withheld by law enforcement
9.
Production orders, restraint orders and confiscation orders and the
response required by them
Respond within the specified timescale to appropriate orders
issued by a court with all pertinent information that falls within the
scope of the order
10. The importance and value of client review techniques in the light of
experience of SARs
AML20/08
Conduct client reviews which take into account features common in
suspect client relationships
12. Your organisation’s requirements relating to the application of codes, laws
regulatory requirements and guidance, including data protection and health
and safety, as they impact on your activities
AML20/09
Keep accurate and complete records of external SARs, storing
them securely and ensuring that they are only available to
AML20/05
AML20/06
AML20/07
Seek consent from law enforcement agencies, where required
under applicable legislation, to proceed with a suspected
transaction or activity
11. The records that need to be securely retained, and for how long
32
authorised persons
33
National Occupational Standards for Anti-money Laundering and Countering Terrorist
Financing – Glossary of terms used
The definitions below are included to complement the units within this suite of National
Occupational Standards and they have been reproduced from the resources available from a
range of regulatory sources, where available.
Breach
Misconduct or a contravention in respect of which law
enforcement authorities or regulatory bodies are empowered to
take action including the power to impose penalties.
Compliance
The establishment, implementation and maintenance of
adequate policies sufficient to ensure a firm’s managers,
employees and appointed representatives meet obligations
under the legal and regulatory system, and for countering the
risk that the firm might be used to further financial crime.
Customer due diligence
The process of identifying and verifying the identity of a
customer and any beneficial owner of the customer, and
obtaining information on the purpose and intended nature of the
business relationship.
Disclosable information
Any information which has to be disclosed in the market in
accordance with any legal or regulatory requirement.
Enhanced due diligence
An additional customer due diligence measure that must be
applied where the customer has not been physically present for
identification purposes, where the customer is a Politically
Exposed Person or in any other situation which by its nature
can present a higher risk of Money Laundering or Terrorist
Financing.
Financial crime
Any kind of criminal conduct relating to money or to financial
services or markets, including any offence involving fraud or
dishonesty; misconduct in, or misuse of information relating to,
a financial market; or handling the proceeds of crime.
Financial sanctions
One element of a package of measures including targeted asset
freezes on individuals / entities, used for reasons including
preventing and suppressing the financing of terrorists and
terrorist acts.
Governing body
The board of directors, committee of management or other
governing body of a firm or recognised body, including in
relation to a sole trader, the sole trader.
Law enforcement
authorities
All jurisdictions which (where appropriate) have control over
your organisation, including regulatory, statutory, legal,
investigating, licensing, issuing and supervisory authorities.
Measures
All required policies, procedures and systems as well as the
requirement for regulated organisations to apply enhanced
customer due diligence and enhanced ongoing monitoring on a
risk-sensitive basis in certain defined situations and in any other
34
situations which can present a higher risk of Money Laundering
or Terrorist Financing.
Money Laundering
Money Laundering is the process by which criminally obtained
money or other assets are exchanged for ‘clean’ money or other
assets with no obvious link to their criminal origins.
Nominated Officer (or
Money Laundering
Reporting Officer)
A person in a firm or organisation nominated by the firm or
organisation to receive information from others within the firm or
organisation who know or suspect that a person is engaged in
Money Laundering.
Regulatory bodies
Any authority, body or person having, or who has had,
responsibility for the supervision or regulation of any regulated
activities or other financial services, whether in the United
Kingdom or overseas.
Risk
The combination of likelihood and impact, including perceived
importance.
Risk-based approach
A series of steps taken to determine the most cost effective and
proportionate way to manage and mitigate the Money
Laundering and Terrorist Financing risks faced by a business.
These will balance the costs to the business and its customers
with a realistic assessment of the risk of the business being
used for Money Laundering or Terrorist Financing.
Senior management
A firm’s senior management is responsible for its activities, for
its risk management and for ensuring that its business complies
with legal and regulatory requirements.
Suspicious Activity
Report (SAR)
A Report which alerts law enforcement that certain customer
activity – such as the cash purchase of a high-value asset or a
series of large, uncharacteristic deposits – is in some way
suspicious and might indicate Money Laundering or Terrorist
Financing
Systems and controls
The practices and procedures put in place to protect an
organisation from financial crime. In some cases it is accepted
that certain (or indeed all) types of financial crime cannot be
wholly prevented, but controls can limit its extent and impact.
Terrorist Financing
The financing of activities which are designed to influence
government, or to intimidate any section of the public, or to
advance a political, religious or ideological cause where the
action would involve violence, threats to health and safety,
damage to property or disruption of electronic systems.
‘Tipping off’
The offence whereby a person knows that a Suspicious Activity
Report has been made to law enforcement authorities but
makes a disclosure which is likely to prejudice the investigation.
An example is letting an individual know that the authorities are
investigating, thereby giving them time to destroy evidence.
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