This manual will provide you with a guide to your obligations under the UK anti-money laundering laws in connection with Money Transfer and our Bureau De Change business. All Money Service Businesses (MSBs, which include a Bureau de Change & Money Transmission Agents) have to comply with the Terrorism Act 2000, Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017. Compliance with the regulations is policed by Revenue & Customs:
A) Requiring any attempt to acquire Criminal property to be reported to NCA
B) Imposing conditions upon transactions that are happening in the future
C) Extending the failure to report offenses to include negligent failure to report.
In addition, HM Treasury Asset Freezing Unit lists individuals with whom it is a criminal offense to conduct a transaction. MT Global Ltd, checks all transactions against this list. It is vital that you comply with the Terrorism Act 2000, Money Laundering Regulations 2017, and the Proceeds of Crime Act 2002.
The Purpose of these guidelines is to ensure that you:
A) Understand the importance of the money laundering laws and regulations;
B) Understand and have in place the required preventive controls;
C) Know how to recognize a suspicious transaction; and
D) Know what to do should such a suspicious transaction arise
These guidelines provide an explanation of the procedures and requirements you, as an agent of MT Global Limited are expected to follow.
2. What is Money Laundering?
Money laundering is the process by which criminally obtained money or other assets are exchanged for "clean" money or other assets which no obvious link to their criminal origins. It is often associated with drug dealing, fraud, organized crime, tax evasion or terrorist financing. If undertaken successfully it will allow criminal to maintain control over the proceeds & ultimately to prove a legitimate cover for their source of income.
3. Money Laundering Regulations
2017 Money Laundering Regulations place a range of obligations on MSB‟s: Requirement to be registered as an MSB with the designated regulator (HMRC). Requirement for those who run money transfer companies to satisfy “fit & proper‟ test (those not judged satisfactory will be prohibited from running money service businesses). Customer “due diligence” requirements obligation to identify the customer & verify the customer from an independent data source.
Special due diligence obligations in three specific situations:
Ø For non-face to face customers, customers who may be “politically exposed” or customers who may present a higher risk of money laundering.
Ø Beneficial ownership obligations to understand who are underlying individuals who make financial gains from business relationships or transactions
Ø When a business relationship has been established, requirements to establish customer source of funds/purpose of transaction, also on going monitoring obligations
To keep business records for 5 years
To have internal reporting mechanisms to allow reporting of suspicious activity
To appoint a Nominated Officer (sometimes known as Money Laundering Reporting Officer
To train staff on the law and training in how to recognize suspicious activity
To take a “risk based approach‟ to all aspects of the AML policies for the business
Penalties: Criminal conviction under the MLR‟s can incur up to 2 years imprisonment. HMRC has powers to impose civil penalties (fines) on business that fail to comply with the MLR‟s in respect of: Notification and registration requirements, Customer due diligence measures, Record-keeping
Policies and procedures to forestall and prevent money laundering and terrorist financing
Disclosures under Part 7 of the Proceeds of Crime Act Training of employees.
Regulator: HM Revenue. Fines will be for an amount that is considered by supervisory authority appropriate for purposes of being effective, proportionate & dissuasive‟.
4. EU Payments Regulation
The definition of money laundering corresponds to the one in Directive (EU) 2015/849 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC 2005/60/EC and is internationally recognized. For the purposes of this Directive, the following conduct, when committed intentionally, shall be regarded as money laundering:
Where can I find out more?
For more information about international efforts to combat terrorism and terrorist activities, refer to the following Web sites:
For more information about Spain's anti-terrorism efforts, refer to the following regulators websites:
Implemented into UK law as Transfer of Funds (information on the payer) Regulations 2017) requires Money Transfer Businesses to obtain customer’s information when undertaking transfer of customer’s funds into and out of the UK. This means:
Step 1 – Collect and record customer information The MSB must collect & record sending customer’s proof of ID, name & address. Each transaction must be given a unique transaction number if customer does not have an account. The information collected is known as Complete Information on Payer (CIP). As an alternative to requesting customer’s address, MSB can request address and proof of ID (Please see table A & B on page number 35).
Step 2 – Verify the customer information provided
By sending or transfer any amount outside Non-Eu Courtiers, Company must verify & obtain customer's information from a reliable independent source (Please see table A & B on page number 35). For EU to EU fund Transfer, ID will be required when amount exceed 1000 Eu.
Step 3 – Send the information which has been gathered to the payout service provider in the payout country if the transfer of funds is to a destination outside the EU, complete payer information (full CIP) must accompany the transfer.
Full CIP may be defined as one of the following combinations of information:
Customer name plus address plus transaction number
Customer name plus name and date and birth plus transaction number
Customer name plus customer ID number plus transaction number
Customer name plus customer number
Customer name plus transaction number
5. Criminal Property?
Under section 340 of POCA, criminal property is that which:
Ø was gained from criminal conduct either in: whole part directly or indirectly
Ø the alleged offender knows or suspects was gained from criminal conduct
Criminal property may Include money all forms of possession or real estate any other intangible or incorporeal property (not existing in physical form, for example copyright, trademarks, or patents)
6. Why is MT Global concerned about Money Laundering & Criminal Property?
Money laundering is a criminal activity and is subject to a maximum penalty of 14 years’ imprisonment and/or an unlimited fine. Anyone engaging in or facilitating money laundering puts MT Global Limited's reputation and themselves at risk.
7. Branch and networking
MT Global has established the branch and agent network in the Ireland & SPAIN and all registered with FCA and related authority.
IRELAND BRANCH ADDRESS:
62A Lower Clanbrassil Street Dublin
SPAIN BRANCH ADDRESS:
MT Global Limited Sucursal De Mt Global Limited
Calle Sant Antoni Abat 26
Barcelona 08001 Spain
Also, MT Global Ltd have registered all their locations in the United Kingdom that provide their services with HM Revenue & Customs. This means that officers of the HM Revenue & Customs have the power to enter your premises at any reasonable time in order to inspect your transaction records and your compliance with the "CATCH" principles.
The Preventive Measures
To prevent money launderers from using our services, there are procedures that you are required to follow. These are designed to achieve two purposes:
To enable suspicious customers & transactions to be recognized & reported to authorities;
To ensure if a customer comes under investigation in the future, you & MT Global Ltd can provide an audit trail for the investigating authorities. The preventive measures with which you must comply are summarized as the CATCH Principles
8. THE CATCH PRINCIPLES
a. C- Confirm the identity of customer
Make sure you have obtained and recorded sufficient information about the customer including name, address, date of birth and occupation. Refer to ID requirements described in your relevant operating manual. You should never accept photocopied ID. Retaining accurate records of the ID provided is vital. It means understanding what a “normal‟ transaction is for your typical customer. If your customer is unable or unwilling to produce evidence of ID, you should refuse to proceed with the business relationship or transaction. You should also consider making a disclosure report.
b. A- Appoint a Nominated MLRO or senior person responsible
If your main trading business is an MSB activity, A Nominated Money Laundering Reporting Officer (MLRO) must be appointed within your business. If your main business is something other than MSB activity, for example, a general food store, & if you provide one or more of our services as a side business, then you must have a senior person responsible within business. This person should report any suspicious transactions immediately to Compliance Department at MT Global Ltd using MLR1.
c. T-Train all staff
You must ensure that your employees understand their obligations under Money Laundering Regulations 2017, Terrorism Act 2000 & Proceeds of Crime Act 2002. All staff should be familiar with this manual & the product operating manual which details ID & record keeping requirements. MT Global Ltd will provide you with relevant notices & bulletins as issued from time to time by HM revenue & Customs.
The Form MLR2 contains your acknowledgement that you have understood your responsibilities. After dealing with the requirements 1 to 7 stated on this form, the form must be faxed back to the Compliance Department at MT Global Ltd.
Every 3 months, MT Global will undertake an internal audit & AML training, ensuring that you & all your staff understand anti money laundering responsibilities. If you have any doubts about your responsibilities, please contact our Compliance Department immediately.
d. C-Controls must be put in place to identify and report suspicious transactions
You must ensure that you & all your staff know how to recognize suspicious transactions & to whom such activity must be reported. MT Global provides you with procedures that: Facilities identifications of those transactions that is suspicious. Enable employees to report suspicious transactions to the Nominated MLRO or person responsible.
You must Report any suspicious transactions immediately within 24hrs to Compliance Dept. at MT Global Ltd using internal transaction reporting form MLR 1.
You must also report any future specified transaction that you think to be suspicious immediately within 24hrs to Compliance Dept at MT Global Ltd & await consent to transact.
e. H- Hold all records
MT Global keep records of transactions & ensure that they are kept for at least 5 years from the completion of a transaction. The records must be secure and easily accessible should they be required. In addition, you must retain any training records, staff sign offs, anti-money laundering literature and all copies of suspicious activity reports you may have sent in. It is best if you keep these articles together as you may be asked by HM Revenue & Customs officials to produce these records. Failure to comply with any of the above requirements can result in up to 2 years’ imprisonment and/or an unlimited fine.
9. Customer Due Diligence
Our CDD obligations are designed to make it more difficult for our business to be used by criminals for money laundering or terrorist financing. We must also guard against fraud, including impersonation fraud. The Money Laundering Regulations 2017 focus on customer due diligence. Customer due diligence is not merely seeing ID at appropriate levels, but treating each customer depending on the level of risk. A higher risk customer could be deemed as someone using the service regularly or a customer wishing to process a large value. In such situations, you need to be extra vigilant by using your experience & common sense and request ID if not provided, or speak to the customer to ascertain reasons why, the customer may have a genuine reason for activity. If customer is a regular customer you need to monitor use of the service for any changes in their business or behavior. You may wish to speak to MT Global experienced staff to discuss situation & take advice. If you believe activity is suspicious REPORT.
For MT Global Ltd, CDD means identifying our customers and verifying their identity.
When must these due diligence measures be applied?
CDD measures must be applied:
Ø When establishing a business relationship;
Ø Where there is a suspicion of money laundering or terrorist financing;
Ø Where there are doubts about previously obtained customer identification information;
Ø At appropriate times to existing customers on a risk-sensitive basis.
For commercial reasons, as well as for AML and Counter Terrorism Finance (CTF) reasons, we require all new customers who wish to use our services, to prove their identity before a transaction can be processed. We make the assumption that every new customer will become a regular customer and therefore wishes to establish a business relationship.
Customer Due Diligence - other linked transactions
Within each two-week period, MT Global Extracts Trend Analysis data as follows:
Matching Customers: This matches Sender address against Agent address looking for examples where an incorrect address may be being used, or where the agent is sending monies himself.
Postcodes: This matches sender postcodes with the address link looking for different addresses using the same postcode, and/or numerous persons using the same address.
Reviews Send Data and looks for:
a) Multiple receivers receiving from one sender
b) Receiver receiving from multiple senders
a) Multiple senders sending to one receiver
b) Sender sending to multiple receivers
Multi – Agent: We are looking here for abnormal trends in Receive volumes per Agent Reviews Receive data and looks for:
a) Sender to Multiple Receivers
b) One sender sending to many
c) Receiver from Multiple Senders
d) One receiver receiving from multiple senders
10. Enhanced Customer Due Diligence - EDD
MT Global has an advanced IT system which is designed under AML regulations which alert when the ID is required, expired or name appearing in sanction and PEP List and others alert.
Transactions are reviewed by operators who must confirm that nothing appears suspicious about the nature of the transactions undertaken. Should suspicion be aroused, the Agent(s) involved in money remittance for the customer will be instructed to request explanation from the customer as to the nature of the transactions involved.
Risks requiring Enhanced Due Diligence
There is a risk that money transactions may be carried out by a PEP (politically exposed person). MT Global check the customer name on every transaction against the Asset Freezing Sanctions list, & a selected database of PEPs.
Suspicions. Here are some examples of suspicious transactions/behavior (not a complete list)
a) An individual sending multiple transactions to the same receiver.
b) Individuals who send money to several different people, or send to different countries within a short period of time.
c) People who send several lower value transactions within a short period of time. Such customers are often found to be using slightly different details each time. Things to look out for are different house numbers, slightly different street names, dates of birth and telephone number varying.
d) People asking how much they can send on 1 ID then proceed to send under that level.
e) More than one person in the Agent at the same time sending money to the same receiver or the same town.
f) Suspicious behavior, customer seems uncomfortable and anxious whilst you are processing the transaction.
g) People trying to send money, using fake ID. Things to look out for: Date of birth on document doesn’t relate to the age of the customer, font on the document seems to differ as if certain details have been changed. All documentation provided is in same font and size. Fake ID most common: Driving License, Passport & Utility Bills.
h) People giving over fake money. Things to look out for- the feel of the note, the silver strip & how it behaves under UV light, is the Queens head watermark showing under the UV light?
i) Various people sending money giving the same address or information very similar to one another.
j) Customers sending money for payment of goods bought from the internet or to release funds for a lottery winning. Often the customers never receive the goods or their winnings, as they have been subject to a scam.
k) Customer is regularly using an Agent who is nowhere near where they live.
a) Customer who picks up a number of receives from the same or different people.
b) Customer, who receives a large value, then sends some of money in another transaction.
c) Customer is regularly using an Agent who is nowhere near to their living address.
d) People trying to receive money, using fake ID. Things to look out for: Date of birth on the document doesn’t relate to age of the customer, font on the document seems to differ as if certain details have been changes. All documentation provided is in the same font & size. Fake ID most common: Driving License, Passport Utility Bills.
11. Recognition and Reporting of Suspicious Transactions.
There is a legal obligation for all staff to report suspicions of money laundering, or other attempt to gain from proceeds of crime, to the Agency Nominated MLRO or person responsible for reporting suspicions to Compliance department at MT Global Ltd.
To report a suspected money-laundering or criminal offense in this manner acts as a complete defense to any charge of money laundering. It is therefore essential that all suspicions, no matter how remote, should be reported without delay. This action will protect you from any claim for breach of customer confidentiality.
When a report is received, the compliance Department will review the report and then liaise with the relevant Nominated MLRO. The Nominated MLRO must determine whether this information gives rise to knowledge or suspicion that a customer is engaged in money laundering or other criminal conduct and then decide if it should be reported to SEPBLAC & NCA. It is the Nominated MLRO who can decide not to send a report to SEPBLAC & NCA. The reasons must be documented.
How do you determine if a transaction is suspicious?
"Suspicious activity" includes any transaction that does not fit into the normal course of business. This is sometimes difficult to recognize and that is why it is important to "Know Your Customer". It is very important to use judgment, based on everything surrounding the transaction to determine whether it is suspicious and needs to be reported to the Compliance Officer at MT Global Ltd. Here are some key factors you should consider/ask yourself to determine if the transaction is suspicious.
a) Is customer refusing or reluctant to provide required information or identification?
b) Is customer providing unusual or suspicious documents; for example, an altered passport, driving license where date of birth doesn't appear to match age of customer?
c) Is customer concerned whether there any record keeping requirements?
d) Is customer at an Agent location that is remote from his/her home address?
e) Is customer behaving suspiciously? Does customer seem uncomfortable anxious?
If the above apply, the transaction must be refused, and the attempted transaction reported to the Compliance Department at MT Global Ltd immediately.
Regular and established customers:
a) Is transaction reasonable in the context of normal business of a regular customer?
b) Is size & frequency of transaction consistent with normal activities of customer?
c) Has pattern of transaction changed since business relationship was established?
12. Reporting a "future specified transaction"
The reporting of suspicious activity is extended by Proceeds of Crime Act 2002 to include the requirement to obtain "consent" to conduct future specified transaction".
MLR1 relating to a future specified transaction (consent required)
NCA may give written consent to continue doing business with the customer. The purpose of the consent letter is to provide you with a defense against a charge of assisting a money launderer. NCA will then disseminate you report to law enforcement within the geographical area. The Compliance Department at MT Global Ltd will advise you if and when written consent is received. If a customer who is the subject of a “future specified transaction‟ disclosure attempts to carry out a further transaction, you should consider whether the transaction should be reported as soon as possible to the Compliance Department.
Same has to be reported to SEPBLAC if transaction is conducted in SPAIN and the transaction cannot be undertaken until "consent" has been given by NCA.
If a transaction is completed before consent is given, a money laundering offense will be committed.
In practical terms, if a customer enters your location and undertakes a transaction, the transaction is happening in "real time" and "not in the future". If any suspicion is raised, it will be during or after the event, and you must report this transaction in the usual manner as soon as practicably possible and in any case within 24 hours.
If the same customer, then tells you that he/she will come back next week to do another transaction and gives you specific details regarding that (being a reference number or the drawer) then the customer has "specified a future transaction".
In addition to making your suspicious activity report for "current real time transaction" you must advise Compliance Department at MT Global Ltd of the "intended future transaction". Unless Compliance instructs you otherwise, you must assume that future transaction has been reported to NCA & the consent to transact is awaited. The Compliance Department will advise you consent is received.
So, if the customer returns on the fourth day for example, and consent has not yet been granted you MUST NOT complete the transaction. If you anticipate the refusal may place you in a difficult or dangerous situation, you should contact the Compliance at MT Global Ltd for advice on how to proceed.
You must not alert the customer by telling him/her that you cannot process the transaction because you are awaiting consent from the NCA. If you do, you commit an offence of “TIPPING OFF”.
13. Money Laundering Offences
It is an offence for any person to provide assistance to a money launderer to obtain, conceal, retain or invest funds if that person knows or suspects or, in case of terrorist activity, should have known or suspected that those funds are proceeds of serious criminal conduct. Such as assistance is punishable on conviction by a maximum of 14 years imprisonment or a fine or both. It is a defense that person concerned reported his/her knowledge or suspicion to law enforcement agencies at first available opportunity.
Tipping off. If a customer has been reported, it must be assumed that the customer in under investigation. Extreme care must be taken not to alert the customer to this, as it will be construed as "Tipping off". Tipping off a suspected money launderer is a criminal offense punishable by up to 5 years in prison and/or a fine.
14. Acquisition, possession or use of criminal proceeds
Acquisition is the offense of use or possession of property which you know or have reasonable grounds to suspect to be the proceeds of drug trafficking or criminal conduct and have acquired at less than full value. This is punishable on conviction by a maximum of 14 years’ imprisonment or a fine, or both.
Concealing or transferring the proceeds of criminal activity
Concealing is disguising, removing or transferring proceeds directly or indirectly of drug trafficking or criminal conduct for the purpose of avoiding or helping someone else avoid prosecution. Any person who assists in the concealment of criminal proceeds or who knows, or has reasonable grounds to suspect the nature of the transaction, can also be charged with his offense. This is punishable on conviction by a maximum of 14 years’ imprisonment or a fine or both.
15. Failure to report
For all crime, it is an offense for any person who acquires knowledge or a suspicion of any money laundering in the course of their trade, profession, business or employment not to report the knowledge or suspicion as soon as it is reasonably practical after the information came to his/her attention.
In these circumstances is punishable on conviction by a maximum of 5 years’ imprisonment or a fine or both. Points to remember:
i) Reporting is your defense in law.
ii) Give the reason for your suspicion, no matter how trivial.
16. Reporting to National Crime Agency (NCA) UK.
The National Crime Agency (NCA) is a national law enforcement agency in the United Kingdom which replaced the SOCA. It became fully operational on 7 October 2013 and is a non-ministerial government department. The NCA includes the Child Exploitation and Online Protection Centre as an individual command, and parts of the National Policing Improvement Agency. Some of the responsibilities of the UK Border Agency relating to border policing also became part of the NCA.
It is UK's leading agency against organized crime, human, weapon & drug trafficking; cybercrime & economic crime that goes across regional & international borders, but can be tasked to investigate any crime. NCA is at forefront of fight against serious & organized crime in UK & throughout world.
17. Reporting to Spain’s Financial Intelligence Unit, "SEPBLAC":
The Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences (SEPBLAC, acronym in Spanish) is the Spanish financial intelligence unit. Its primary mission is to receive and analyses reports of suspicious and unusual transactions. It also carries out, in general terms, supervisory & inspection functions of the anti-money laundering system.
Reports of Suspicious Transactions: MT GLOBAL is required to report any suspicious customer activities or transactions to The Spain’s Financial Intelligence Unit ("SEPBLAC").
Bank of Spain
Alcalá 48 28014 Madrid Spain.
MT Global for Sepblac Representative: Mr Mazhar Hussain
Suspicious transaction reports:
18. Third Party Transaction
Source of funding: HM Revenue & Customs have taken view that MSB businesses themselves may pose a money laundering risk, have indicated that their inspecting officers need to consider:
a) Where does the Agent purchase their cash?
b) Does the Agent Purchase any cash from other businesses?
c) What price is the Agent charged for their cash?
d) Is the discount in line with what you would expect acceptable?
e) Does cash sold reflect the declared turnover?
With the third-party transaction, we assume all customers will establish a business relationship with us and therefore ID is required from outset of the relationship. Business relationship is defined by Money Laundering Regulations 2017 as a business, professional or commercial relationship between an MSB and a customer, which is expected to have an element of duration. ‟ Customer due diligence measures must be met and kept updated.
MT Global reasonably assumes that its business customers pay tax & are not using third party transactions as a means of evading tax, unless there is reason to suspect otherwise.
19. Money Transfer
Retail money remittance services: A money transfer service offered to a sending customer whereby a remittance payment is made to a named receiving customer, often in another country, and where the transaction size is less than £5,000
High value money transfer services: A money transfer service offered to a sending customer whereby a payment is made to a named receiving customer, often in another country, and where the transaction size is £5,000 or more
Foreign Exchange plus onward transfer: Provision of currency exchange for a corporate or private client plus onward transmission of funds for a payment purpose (e.g. purchase of property/settlement of an invoice)
Offering any or all of the services offered above means that the company qualifies as a Payment Institution and is regulated by the Financial Conduct Authority as well as by HM Revenue and Customs.
HMRC registration along with a consumer credit licence is required for these services.
20. COMPANY DETAILS, USEFUL NUMBERS AND CONTACT DETAILS
Money Laundering Regulations No
Financial Conduct Authority FCA
Company Incorporation Number
MT Global Limited
Registered Trading Address
75A Crawley Road Luton
Trading Post Code
Customer Services Email
MLR Officer Number
Company Director Number
Compnay Director Email
Types of Money Services Business
Bureau De Change, Money Transmitter
Date of First Registration
22. What are the criminal offences?
The Proceeds of Crime Act 2002 as amended by the NCA and Police Act 2005
POCA Part 7 sets out the primary offences relating to money laundering.
Regulator: National Crime Agency (NCA)
Terrorism Acts 2000 as amended by Anti-Terrorism, Crime & Security Act 2001
These acts set out the primary offences relating to the funding of terrorism. The Acts deal with suspicion of terrorist financing and requires firms in the regulated sectors to report where there are grounds to know or suspect offences relating to terrorist financing. These offences include:
Ø fundraising for the purpose of terrorism (section 15)
Ø using or possessing money for the purposes of terrorism (section 16)
Ø involvement in funding arrangements (section 17); and
Ø money laundering (facilitating the retention or control of money which is destined for, or is the proceeds of, terrorism) (section 18)
This obligation is significantly different from that under POCA – as it does not just cover "proceeds" of crime, but all funds, regardless of their origin.
Penalties: Conviction for any of the above offences can incur up to 14 years imprisonment and/or an unlimited fine. Failure to disclose the belief or suspicion that someone has committed any of the offences above can incur up to 5 years imprisonment and/fines. It is likewise an offence to 'tip off' a suspect that a disclosure has been made of suspicion of terrorist funding or of a subsequent investigation. This offence carries a penalty of up to two years in prison or unlimited fines.
Regulator: Responsibility for dealing with criminal breaches of the Terrorism Act lies with the police but businesses which follow guidance issued by HMRC are likely to have protection in a court of law.
Counter Terrorism Act 2008 Schedule 7 This schedule provides new powers for the Treasury to apply financial restrictions in respect of non-EEA countries because of the risk posed by money laundering or terrorist financing, either:
Ø in accordance with a recommendation of the Financial Action Task Force (see www.fatf-gafi.org) or on its own initiative
Ø if such activity poses a significant risk to the UK‟s national interests
Ø The provisions of the act allow HM Treasury to impose on firms:
Ø stricter requirements for Customer Due Diligence – identifying clients, beneficial owners and the nature of business relationships
Ø stricter requirements for ongoing monitoring of transactions
Ø a requirement to undertake systematic reporting of all transactions with designated entities
Ø a requirement to limit or stop business with designated entities
Penalties: There are civil and criminal sanctions for failure to comply with the Counter Terrorism Act 2008 Schedule 7. These include unlimited fines and imprisonment for up to 2 years. Regulator: HM Revenue and Customs
Financial Sanctions These are normally used by the international community for one or more of the following reasons:
Ø To encourage a change in the behavior of a target country or regime
Ø To apply pressure on a target country or regime to comply with set objectives
Ø As an enforcement tool when international peace and security has been threatened and diplomatic efforts have failed
Ø To prevent and suppress the financing of terrorists and terrorist acts
In the UK, HM Treasury is responsible for publishing the list of individuals/groups to which financial sanctions apply and for monitoring compliance. The following sanctions regimes are presently in place: Al Qaida and Taliban, Belarus, Myanmar (Burma), Democratic Republic of Congo, Federal Republic of Yugoslavia and Serbia, International Criminal Tribunal for the former Yugoslavia, Iran, Iraq, Ivory Coast, Lebanon and Syria, Liberia, North Korea, Sudan, Terrorism and terrorist financing, Zimbabwe.
The HM Treasury Consolidated Sanctions List is available from:
Penalties: It is a criminal offence to make funds available to individuals/groups on HMT Financial Sanctions list. This includes dealing directly with them or through intermediaries (such as lawyers or accountants). Maximum term of imprisonment for criminal contravention of Financial Sanctions regime is currently 7 years.
The key requirement is that enough information should be sent to the PSP of the payee so that the transaction is traceable back to the originating customer.
In event that a UK based MSB is receiving transactions sent from abroad (countries outside the EU), then the MSB must ensure that they are receiving full CIP for each transaction. if they do not receive this information from sending payment service provider, then they should cancel business relationship & consider a report to NCA.
Penalties: Companies which are failing to comply with the Payments Regulation may be liable to the same penalties as for non-compliance with the MLR (i.e. fines and/or criminal prosecution). HMRC have indicated that businesses which are consistently not complying now with the Payments Regulation may be at risk of failing the “fit and proper” test.
23. Risk Assessment of our Payments Business.
The 2018 Money Laundering Regulations require that each MSB must adopt a new “Risk based approach” to its customers, products and business practices. Risk may be established both on the basis of objective criteria and subjective criteria.
It is company policy to consider and take note of any reports produced by the Financial Action Task Force (FATF) on ML/TF risks in relation to particular countries where available. These reports are available at http://www.fatf-gafi.org/
The FATF assessments are used as an indicator – they enable us to determine when we should place closer scrutiny on the destination for payment transactions. This does not mean that customers who send to these locations are transacting illegally or are suspected of illegal activity.
Products Our company licenses enable to business to offer all related services subject to regulatory terms & conditions being met. Our business may add in future service listed below unless indicated by a value then the activity is not carried out.
Unusual Activity which may be suspicious. One off cash transaction above 5,000 Euros (or local equivalent) – the customer is processing a large transaction
Split transactions – the customer is attempting to split a large transaction into several smaller transactions to avoid obligations to provide proof of source of funds
New customers carrying out large transactions (as opposed to regular customers) Regular customer is processing transactions which do match profile of previous transactions
Customers processing transactions who do not appear to be legitimate owners of the funds (i.e. students processing large transactions)
Customers involved in transactions which appear to be linked to transactions by others
Customers who cannot provide ID when requested or who provide false ID
Customers who cannot justify source of funds when requested
Customer is not local to the business, (but not a tourist)
Customer is paying in used notes or in small denominations
Transactions where customer is accompanied by another person who tells him what to do
Transactions which involve large numbers of 500 Euro notes
The customer operates in a high-risk area dealing in lots of cash: restaurants, pubs, casinos, tax firms, beauty salons and amusement arcades
Customers who are not native to the country they are sending money to (i.e. English people)
Customer is processing large volume transactions in cash, (rather than sending funds from his personal bank account)
24. Policies for dealing with the financial crime risk to our business Company approach, Internal Systems and Control
Statement of company principles in relation to dealing with financial crime
The management of MT Global Limited have agreed this statement of high level principles at their meeting on 4th May 2018. Senior management of the company recognises that a commitment to the highest standards in relation to issues of anti-financial crime procedures is fundamental to the successful operation of the business. We further recognise that it is our responsibility to create framework in which successful implementation anti-financial crime policies within business can take place.
We recognise & endorse the need for a strong & rigorous system of controls to manage the possible threats to our business associated with financial crime.
We further recognize our obligation to monitor all transactions which pass through our business to be on lookout for suspicious activity which may indicate criminal behavior. We hereby affirm:
Ø the re-confirmation of Mahboob Rasool to the position of MLRO – they are the person to who all internal suspicious activity reports should be directed
Ø the obligation of the MLRO to make a report when required to senior management on financial crimes issues and the business
Ø the company’s commitment to train all staff in anti-financial crime procedures
Ø the obligation on all staff to remain aware of the potential for financial crime to occur within the business, and (if they have suspicions), their personal obligation to report their suspicions to the MLRO without delay
The company recognises & endorses risk based analysis of financial products, customers & geographic areas of operation which is included in this manual.
The company endorses operational policies to be followed by staff to address threat of Financial Crime to our business. This includes information on customer due diligence, transaction processing, transaction monitoring plus other important issues.
Senior managers confirm that they will keep issues of compliance under ongoing review, but commit, as a minimum, to review company’s policies manual within 12 months time at the latest.
25. Nominated Officer (Money Laundering Reporting Officer)
The Money Laundering Reporting Officer (also known as the nominated officer)
MLRO contact information shown below:
Mahboob Rasool Tel: 01582 734444
Responsibilities of MLRO
The MLRO is the focal point within the company for the oversight of all activity related to anti-financial crime issues. Their responsibilities include:
Ø reviewing all new laws & deciding how they impact on operational process of company
Ø preparing a written procedure manual & making it available to all staff & oth stakeholder
Ø making sure appropriate due diligence is carried out on customers and business partners
Ø receiving internal Suspicious Activity Reports (SARs) from staff
Ø deciding which internal SAR need to be reported on to NCA and SEPBLAC
Ø recording all decisions relating to SARs appropriately
Ø ensuring staff receive anti-financial crime training when they join and that the receive regular refresher training
Ø monitoring business relationships and recording reviews and decisions taken about continuing or terminating trading activity with particular customers
Ø making sure that all business records are kept for at least five years from the date of the last customer transaction
Training is given to all staff members upon commencement of taking on the money transfer service and on regular occasions afterwards (at least once a year). Training covers the following issues: The law relating to financial crime
Ø Risks associated with the financial crime threat to the company
Ø Identity and responsibilities of the MLRO
Ø Internal policies and procedures put in place
Ø Customer Due Diligence/Enhanced due diligence monitoring measures
Ø Suspicious activity – what to look out for
Ø How to submit an internal Suspicious Activity Report to the MLRO
Ø Record-keeping requirements
Each member of staff should be ready to deal with risks posed by their role. Their training should be good enough, often enough to keep their knowledge & skills up to date. cover
Ø The staff member’s duties
Ø The risks posed to the business
Ø The business policies and procedures
Ø How to conduct customer due diligence and check customer’s documents
Ø How to spot and deal with suspicious customers and activity
Ø How to make internal reports, including disclosures of suspicious activity data protection requirements
Ø Record keeping
Ø The Money Laundering, Terrorist Financing and Transfer of Funds
Ø Regulations 2017: Part 7 of the Proceeds of Crime Act; and section 18 and 21A of the Terrorism Act
MT Global impart training by
Ø Face to face training through external advisors
Ø Online training
Ø HMRC webinars
Ø Going to conference
Ø Taking part in special meetings to discuss the business procedures
Ø Reading publications
Ø Meeting to look at the issues and risks
The MLRO will keep a log of all training which is provided to staff members – a sample of the training log is attached in the appendix.
All staff will be required to sign the training log where required to confirm that they have received training. The MLRO will circulate to all staff other material to heighten awareness of anti-financial crime issues. This must be placed on the company notice board which should be available in all branch/agent locations.
Record keeping UK HMRC
As per the law, company will keep full detailed records of all transactions with copies of identifications and proof of address provided by customer. All customer records will be retained at least for a period of 5 years from the date of customer’s last transaction. The company will also retain all bank statements, internal & external SAR‟s as well as all records of training & compliance monitoring. All these records will likewise be kept for five years.
Record Keeping Spain SEPBLAC
SEPBLAC requires us to maintain our records for at least ten years following the date they were created. Our records include any client information and identify records, transaction records and SEPBLAC reporting.
It is the responsibility of MLRO to monitor all activity of the business with particular reference to the potential financial crime risk. The MLRO will keep a close eye on the following criteria and provide a report to senior management when required.
The report is likely to include commentary on the following issues (in the case that there is no information to report, there should be a „nil return‟ should be indicated):
Ø Confirmation that adequate CDD information is being collected and that ongoing monitoring is taking place.
Ø Summary data relating to complex or unusual transactions
Ø Number of internal consents/SARs received from staff members
Ø Number of SARs made to NCA.
Ø Information on status of staff training within the company.
Ø Confirmation that all business records have been stored.
Ø Changes in the law/operating environment which are or will impact the business.
Ø Changes in risk matrix effecting the business.
Ø Contacts with the regulator.
Reports should normally be written: MLRO should indicate where there is action regulator, law enforcement or other agency which raises any potential issues for business.
The MLRO will, as a matter of policy, submit an annual report to board of directors.
Customer due diligence
Ø identifying all customers and verifying their identity
Ø identifying all beneficial owners, where applicable, taking reasonable measures to verify
Ø their identity to satisfy yourself that you know who they are
Ø obtaining information on the purpose and intended nature of the business relationship
Ø conducting ongoing monitoring of the business relationship, to ensure transactions are
Ø consistent with what the business knows about the customer, and the risk assessment
Ø retain records of these checks and update them when there are changes
Linked Transactions according to company policy when the following criteria apply:
a. The same sending customer has sent 15,000 eu (or local equivalent) or more in the last 3 months to the same receiving customer in a number of individual transactions (or 5,000 Euros within one month)
b. Three sending customers or more are sending to same receiving customer (or receiving address or telephone no.) & receiving customer or bank account has received more than 15,000 Euros or local equivalent in last 3 three months or 5,000 Euros within one month
c. A sending customer is sending funds on behalf of one or several people (see under CDD)
In the event that linked transactions are identified, they should be notified to the
MLRO who will determine whether or not there are any suspicious circumstances which mean the transaction should be reported to NCA.
26. Beneficial ownership
Corporate clients. All corporate clients will be required to indicate when they register with company who is beneficial owner(s) of that company (those holding 25% share of company). Foreign correspondents/invoice payments
In cases where the company is requested to make payments to third parties at request of foreign correspondents, the MLRO will take steps to understand & record:
Ø Who is the owner of the invoice?
Ø Who is the payee of the invoice?
Both the invoice owner and invoice payee will be subject to a sanctions list check.
Beneficial Owners. You must identify the existence of any beneficial owners (section on customer due diligence gives information on who is a beneficial owner). You must verify beneficial owner’s identity so that you are satisfied that you know who the beneficial owner is. If it is a legal person you must take reasonable measures to understand ownership structure
You will not have satisfied your obligation to identify, verify and understand the structure of a beneficial ownership if you rely solely on the information contained in a register of persons with significant control.
Where a customer is incorporated and in exceptional circumstances, where you have made unsuccessful attempts, and have exhausted all ways, to identify the beneficial owner of a corporate body you may treat the most senior person managing the customer as the beneficial owner. You must keep records of all the steps you have taken to identify the beneficial owner and why they have been unsuccessful.
Obligation of customers to provide information (CORPORATE BODIES/ TRUSTS/ CHARITIES)
Corporate bodies in the UK, who are not listed on a regulated market have obligations to keep a register of people with significant control (a PSC register) and must provide this information when requested. When a corporate person enters into a transaction with a money service business you can request that they provide you with the following information.
Ø Name, registered number, registered office and principal place of business
Ø Names of the board of directors or equivalent body
Ø Names of the senior person responsible for its operations
Ø The law to which it is subject
Ø Its legal and beneficial owners
Ø Its memorandum of association or similar documents
Guidance on the requirements to maintain PSC registers is available at:
This information will assist in identifying beneficial owners but it will not provide you with all the information you need to verify their identity, for example the address or date of birth of the individual.
Trustees have simil
MT Global Ltd is authorised and regulated by the Financial Conduct Authority under Registration Number 565567.
Registered as a Limited Company in England and Wales Company No: 05623359.