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 The OFT Anti-Money Laundering Compliance Regime
February 2009
Money Laundering Regulations 2007
●•
The 2007 Money Laundering Regulations give the
OFT new powers
●•
The OFT is the Supervisory Authority for:
-
- Estate Agents: approx. 15,000 firms
-
- CCFIs: approx 5,000-20,000
Aims of the AML Regime
●•
Combat money laundering and
terrorist financing
●•
Reduce businesses
vulnerability to money laundering
activity
●•
Risk based approach to
compliance and enforcement focusing
on high risk areas.
Businesses are required to:
•
Confirm customer
identity
●•
Keep records
●•
Appoint a money
laundering reporting
officer (MLRO)
●•
Risk based
compliance policies and
procedures
●•
Train staff
●•
Make Suspicious
Activity Reports (SARs)
●•
Register with the
OFT
Why do Estate Agents
have to comply with
the Regulations?
•
Recognised
by FATF as
an area of
high risk
●•
Estate
Agents are a
central
party to
property
transactions
as they meet
both
sides -
normally
face to face
●•
Property
being sold
now may have
been
previously
bought with
the proceeds
of crime
●•
Estate
Agents are
best placed
to see
trends in
certain
areas
How do I
recognise
suspicious
activity?
●• Cash transactions
-• Cash deposit customers
●• Overseas clients
-• Are your clients in tax havens or abroad?
●• Beneficial owner
-• Do you deal with solicitors or companies acting on behalf of a client
●• Mortgage Valuation (under valuing the property)
-• Is the property being sold below market value
How do I recognise suspicious activity?
• Quick Turnaround sales
- - Do your clients buy and sell properties in quick succession with little or no profit
●• Investment vehicles
- - Are your clients buying/selling properties without viewing them or disputing the purchase or sale price.
●• Dubious clients
- No one knows what he does or where his money comes from
Why do Estate Agents have to make SARs?
• Estate Agents are required by the 2007 Regulations to report suspicious activity to SOCA
●• It is an offence under the Proceeds of Crime Act 2002 for failing to report if you have knowledge or suspicion of money laundering and or terrorist financing
●• SARs help SOCA fill the intelligence gap in investigations
Tipping off/Confidentiality
●• Once you make a SAR to SOCA it must remain confidential
●• Tipping off an individual about a SAR made about them is a crime under the Proceeds of Crime Act 2002 (POCA)
The OFT Anti-Money Laundering Compliance Regime
●• OFT’s interim supervision regime
●• Enforcement powers
●• Sanctions
●• OFT registration for supervised businesses
Where can you find more information?
●• OFT has produced guidance for traders (OFT 954)
●• Enforcement Principles (to be published)
Southampton City Council, Trading Standards
Service, Civic Centre, Southampton, SO14 7LY Copyright © Southampton City Council Trading Standards Service 2001 |
