Money laundering legislation in the US is governed by three Acts of primary legislation:-
- Terrorism Act 2000; Anti-Terrorist Crime and Security Act 2001;
- The Proceeds of Crime Act 2002.
Secondary regulation is provided by:
- Money Laundering Regulations 2003;
- Money Laundering Regulations 2007
In the US, requirement to have effective procedures in place to detect and prevent money laundering. Many of the procedures which will be appropriate to address the above obligations are similar, and you can often employ the same systems and controls to meet them. It is important that you have up-to-date risk based procedures in place to address these risks and that all employees understand their obligations and the penalties applicable to them if the break the law.
- develop and implement appropriate procedures to reflect the legislation, regulation and guidance; review and improve, where appropriate, your existing policies and procedures; carry out anti money laundering (AML) checks; provide AML training for employees; monitor and report on AML suspicions; define your ‘know your client’ (KYC) criteria; define your know your client’s business (KYCB) criteria; perform regular compliance audits; undertake continuous improvement of your policies, processes and procedures and their implementation; assist in the production of the Money Laundering Reporting Officer’s (MLRO’s) report to the Board; provide guidance for reporting suspicious transactions to the Serious Organised Crime Agency (SOCA);
- ad hoc advice for money laundering and ensuring FSA compliance.
Using the Approach to addressing AML requirements covers:
- defining the scope of your business for AML purposes; understanding the business; determining and agreeing relevant legislation and regulations applicable for the jurisdictions within the scope; define and agree relevant criteria for KYC and KYCB; establishing the AML processes and procedures; embedding AML awareness and compliance in your business; implementing and operating the AML system within your business; monitoring and reviewing the AML system; AML compliance auditing; continuous improvement of the AML system; provide AML training, as appropriate;
- production of relevant reports.
The benefits of implementing SIRM ‘s AML processes and procedures are that it:
- assists in providing a statutory defence; demonstrates your commitment to AML legislation; demonstrates your legal and regulatory compliance; enhances your customer’s trust in you; lowers the risks of AML breaches occurring and ensuing action; makes it easier for your new employees ‘get up to speed’ by following documented procedures; produces well defined and documented procedures to address AML requirements; protects your reputation;
- provides a framework for managing and continually improving your AML processes and procedures;