Archive for October, 2008
FSA fines firm and MLRO for money laundering controls failings
Posted by: BTC in General News & Cases, Professional Bodies on October 29th, 2008
FSA fines firm and MLRO for money laundering controls failings
The Financial Services Authority (FSA) has today fined Sindicatum Holdings Limited (SHL) £49,000 and its money laundering reporting officer (MLRO), Michael Wheelhouse, £17,500 for not having adequate anti-money laundering systems and controls in place for verifying and recording clients’ identities. This is the first time the FSA has fined a money laundering reporting officer.
The FSA found a number of failings including:
• the firm failed to implement adequate procedures for verifying the identity of its clients;
• it failed to verify adequately the identity of a significant number of its clients;
• it failed to keep adequate records with regard to the verification of the identity of its clients; and
• Mr Wheelhouse failed to take reasonable steps to implement adequate procedures for controlling money laundering risk.
William Amos, head of retail enforcement at the FSA, said:
“It is vital to the integrity of the UK’s financial markets that regulated firms are not used by criminals to launder money. Senior management must implement and follow procedures that meet our requirements so that the risks their firms face are properly managed.”
“This fine is a warning to firms and individuals about the importance of complying with our rules in this area and we will not hesitate to clamp down on failures, where necessary.”
In deciding the penalty for SHL, the FSA took into account the limited financial resources of the firm and its ability to pay the fine. Had it not been for these factors the penalty would have been significantly larger.
SHL and Mr Wheelhouse have taken robust steps to review and improve the firm’s systems and controls in relation to financial crime.
The FSA did not find any evidence of money laundering at the firm.
Visit the BTC website for compliance help and support for firms in the regulated sector.
Q. When do I submit a SAR to SOCA?
Posted by: BTC in General Information & FAQ's, SOCA - Latest News on October 4th, 2008
The Proceeds of Crime Act 2002 expanded, reformed and consolidated the UK’s criminal money laundering offences. Most of the offences under the Act apply to all individuals and businesses in the UK, however, some apply only to those doing business in the ‘regulated sector’.
A SAR should be made as soon as the knowledge or suspicion that criminal proceeds exist has arisen, especially if consent may be required, or at the earliest opportunity thereafter.
SOCA’s preferred method for reporters to submit their suspicion is the SOCA Suspicious Activity Report Form. SOCA prefers these forms to be submitted electronically but hardcopy versions of the forms (including Limited Intelligence Value Reports) can be found on the SOCA website or obtained directly from SOCA. These can then be posted to the address below. Hardcopy consent requests should be faxed to 0207 238 8286.
If you currently submit by post but would like to report electronically visit the SAR Online System or alternatively contact the Money.web support team
Acknowledgement Letters
SOCA will not acknowledge any SAR sent by fax, post, or by letter. Electronic submissions through money.web, bulk submission or through the SAR Online system, will receive an acknowledgment which will include an automatically generated ELMER reference number.
If you have submitted a consent request, the Consent Team will contact you directly with the decision by telephone within the seven day notice period, and then post the appropriate letter to you as confirmation.
If you have any queries relating to acknowledgments please write to the SAR Team at UKFIU, PO BOX 8000, London, SE11 5EN.
Visit the BTC website for compliance help and support for firms in the regulated sector.
