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HMRC Anti-Money Laundering Policy

HMRC Anti-Money Laundering Policy

1. Introduction

This policy outlines the approach required for compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the Regulations”) as supervised by HM Revenue & Customs (HMRC). The aim is to prevent the business from being used for money laundering or terrorist financing and to ensure all legal and regulatory obligations are met.

2. Scope

This policy applies to all employees, senior management, and beneficial owners of the business. It covers all activities and transactions where there is a risk of money laundering or terrorist financing, as defined by the Regulations.

3. Risk Assessment

  • The business will conduct a written risk assessment to identify and assess the risks of money laundering and terrorist financing relevant to its operations.

  • The risk assessment will be reviewed regularly and updated as necessary to reflect changes in regulations, business activities, or emerging threats.

4. Policies, Controls, and Procedures

The business will implement and maintain the following:

  • Customer Due Diligence (CDD): Verify the identity of customers and beneficial owners before establishing a business relationship or carrying out transactions above the regulatory thresholds.

  • Enhanced Due Diligence (EDD): Apply additional scrutiny to higher-risk customers, transactions, or jurisdictions.

  • Ongoing Monitoring: Continuously monitor business relationships and transactions to detect and report suspicious activity.

  • Internal Controls: Appoint a Money Laundering Reporting Officer (MLRO) responsible for oversight and reporting.

  • Record Keeping: Maintain records of customer due diligence, transactions, and internal/external reports for a minimum of five years.

  • Staff Training: Ensure all relevant staff are trained to understand money laundering risks, recognise suspicious activity, and know how to report concerns.

5. Reporting Suspicious Activity

  • All staff must promptly report knowledge or suspicion of money laundering or terrorist financing to the MLRO.

  • The MLRO will assess the report and, if appropriate, submit a Suspicious Activity Report (SAR) to the National Crime Agency (NCA).

  • Ongoing or imminent transactions must be suspended if required, pending consent from the NCA.

6. HMRC Registration and Supervision

  • The business must be registered with HMRC for anti-money laundering supervision if it falls within a regulated sector (e.g., estate agency, high-value dealer, etc.).

  • Registration is a legal requirement and not an endorsement of the business by HMRC.

7. Enforcement and Penalties

  • HMRC may inspect business premises, issue penalties, deregister businesses, or prosecute breaches of the Regulations.

  • HMRC may publish details of penalties and breaches on the GOV.UK website, except in cases where publication would be disproportionate or affect market stability.

8. Review and Approval

  • This policy will be reviewed annually or in response to significant changes in legislation or business operations.

  • Senior management is responsible for approving and overseeing the implementation of this policy.

9. Further Information

For more detailed guidance, refer to HMRC’s anti-money laundering supervision pages on GOV.UK.

Failure to comply with this policy and the Regulations may result in civil or criminal penalties, including fines and imprisonment.