Anti-money laundering policy

There are three principal money laundering offences under the Proceeds of Crime Act 2002. These offences are punishable by a maximum of 14 years imprisonment and/or a fine.

• Concealing, disguising, converting, transferring criminal property or removing it from the UK (section 327 of the 2002 Act); or
• Entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention use or control of criminal property by or on behalf of another person (Section 328); or
• Acquiring, using or possessing criminal property (section 329)

There are also two types of secondary offences:

• Failure to disclose any of the three primary offences and;
• Tipping off. Tipping off is where someone informs a person or people who are, or who are suspected of being involved on money laundering in such a way as to reduce the likelihood of their being investigated or prejudicing and investigation.

Potentially any member of staff could be caught by the money laundering provisions if they suspect money laundering and either become involved with it in some way and/or do nothing about it.

Whilst the risk to the University of contravening the legislation is low, it is extremely important that all employees are familiar with their legal responsibilities: serious criminal sanctions may be imposed for breaches of legislation. The key requirement on employees is to promptly report any suspected money laundering activity to the Money Laundering Reporting Officer (MLRO).

The University has a responsibility to:

• Maintain adequate records of transactions
• Implement a procedure to enable the reporting of suspicious activity
• Maintain customer identification procedures to ‘know your customer’ in relevant circumstances
• Ensure adequate training is given to employees on anti-money laundering procedures and policies Anti-Money Laundering Policy
• Appoint a Money Laundering Reporting Officer (MLRO) to receive, consider and report as appropriate, disclosure of suspicious activity reported by employees

Money laundering legislation applies to ALL employees. Potentially any member of staff could be committing an offence under the money laundering laws if they suspect money laundering or if they become involved in some way and do nothing about it. If any individual suspects that money laundering activity is or has taken place or if any person becomes concerned about their involvement it must be disclosed as soon as possible to the MLRO (Money Laundering Reporting Officer)

Failure to do so may result in you being personally liable to prosecution.

Employees who breach this Code of Conduct are liable for disciplinary action which may lead to their dismissal.

Guidance on how to raise any concerns is included in this policy document.

When taking orders for business from customers in respect of work that counts as ‘relevant business’ staff should consider the following pointers. It is important that controls are in place to identify the student, customer or other party dealing with the University. Satisfactory evidence of identity must be obtained. Examples include passport, visa and birth certificate, correspondence with students at their home address and for third parties, letters or documents proving name, address and relationship.

If an organisation is not known to the University look for letter-headed documents, check web-sites, request credit checks or aim to meet or contact key sponsors as you feel appropriate to verify validity of contact. Cheques drawn on an unexpected or unusual source should always be verified with regard to validity of the source.

• Is checking their identity proving difficult? Is the customer reluctant to provide details?
• Is there a genuine reason for using the services of the University or its subsidiary company?
• Is the customer trying to introduce intermediaries wither to protect their identity or hide their involvement?
• Is the customer requesting a large cash transaction – especially where cash is used notes and/or in small denominations?
• Is the customer requesting cash in large denomination notes?
• Is the source of the cash known and reasonable?
• Where transactions involve international transfers or foreign currency, is the explanation for the business and the amount involved reasonable?
• Are there any unusual requests for collection or delivery? 
• Cancellation, reversal or requests for refunds of earlier transactions?

• Is the transaction reasonable in the context of the normal business of this customer?
• Is the size and frequency of the transaction consistent with the normal activities of the customer?
• Has the pattern of transaction changed since the business relationship was established?

The legislation requires that the University must disclose not only when we have actual knowledge or suspicion of money laundering but also if in the circumstances we should have reached that conclusion and failed to do so. We should be familiar with the type of customer who normally approaches us for business, and how they normally deal with us. Suspicion may be aroused if a customer deals with us differently to our normal experience or wants things that are out of the ordinary for the type of business concerned. If suspicion is aroused members of staff should forward their concern to the Money Laundering Reporting Officer (MLRO) immediately.

Colleges and Services conducting relevant transactions must maintain records for at least six years of:

• Student/Customer identification evidence
• Details of financial transactions carried out

In practice each area will routinely create and retain records in the course of normal business and these will be sufficient for this purpose.

The officers below are the appointed Money Laundering Reporting Officers for the University, and as such, receives, considers and reports, as appropriate, on any disclosure of suspicious activities by staff.

• Andrew Connolly (Chief Financial Officer)
• Donna Fitzgerald (Deputy Director Finance Services) 

Where you know or suspect that money laundering activity is taking or has taken place, or you become concerned that your involvement in a transaction may amount to a breach of the regulations, you must disclose this immediately to your line manager. If in consultation with your line manager reasonable suspicion is confirmed a disclosure report must be made on the MLRO (Money Laundering Reporting Officer). This disclosure should be made on the Disclosure Proforma report (pdf) and should be completed the same day the information came to your attention. Should you not do so, you may be personally liable to prosecution under the money laundering regulations.

Your report should include as much detail as possible including:

• Full available details of the people, companies involved including yourself and other members of staff if relevant
• Full details of transaction and nature of each person’s involvement in the transaction
• Suspected type of money laundering activity or use of proceeds of crime with exact reasons as to why you are suspicious Anti-Money Laundering Policy
• The dates of any transactions, where they were undertaken, how they were undertaken and the likely amount of money or assets involved
• Any other relevant information.

Upon receipt of a disclosure report, the MLRO must note the date of receipt and acknowledge receipt of the report. The MLRO must advise the employee of the timescale within which the MLRO will respond.

To avoid committing the offence of tipping off, once reported the member of staff should not make any further enquiries into the situation, nor should they discuss their concerns with others unless instructed to do so by the MLRO.

The MLRO will note and acknowledge any disclosure received and advise the individuals involved as to when a response can be expected. The MLRO will consider the report and any other available internal information he thinks relevant e.g.

• Reviewing other transaction patterns and volumes
• The length of any business relationship involved
• The number of any one-off transactions and linked one-off transaction
• Any identification evidence held

The MLRO shall then undertake such further enquiries as necessary to investigate the matter. Inquiries will be carried out in such a way as to avoid the appearance of any tipping off of those involved.

The MLRO shall report all suspected incidents of money laundering to the competent authorities. Under the Proceeds of Crime Act, this requires a Suspicious Activity Report (SAR) to be forwarded to the National Crime Agency.

The MLRO shall use their discretion in deciding whether to suspend a transaction whilst any report to the competent authorities is made.

All disclosures and relevant documentation will be retained in a confidential file by the Chief Finance Officer for a minimum of six years.

Instances of suspected money laundering are likely to be rare given the nature of services provided by the University. However we must be aware of the legislative requirements, as failure to comply would have serious implications for both the University of individuals concerned.