ICAEW’s AML email bulletins and updates
I'm the firm's MLRO but don't receive the AML risk bulletins. Is specific registration required and how can I request this?
We produce AML risk bulletins to share risk alerts from the Accountancy AML Supervisory Group in conjunction with the Joint Money Laundering Intelligence Taskforce.Due to the official status of these risk alerts, we can’t publish them in the public domain. We therefore only circulate our AML risk bulletins to MLROs and money laundering compliance principals (MLCPs) listed on the annual return.
We extract their contact emails from our databases and send the AML risk bulletin emails solely to those people.
When you receive these emails, however, you can click on the link, download the alerts and distribute them internally within your firm.
If you’re the MLRO and are not receiving these emails, check your latest annual return and make sure the email address is correct.
If you need to make any updates to your contact details, send an email to the amlr@icaew.com.
How can I make sure I receive AML- the essentials?
MLROs and MLCPs receive AML - the essentials emails as well as the AML risk bulletins. But we will also send AML - the essentials to anyone who expresses an interest in AML.If you’re an ICAEW member, you can go into your member profile area and add a preference to say you want to receive communications about AML and then you'll receive AML - the essentials.
The content from these emails is also published on our website where you will find every issue of AML – the essentials we've published.
Role of the MLRO
Can a firm outsource the role of the MLRO?We very much advise against outsourcing the role. The Money Laundering Regulations make it quite clear that the nominated officer needs to be an individual within the firm.
The regulations also talk about the compliance officer being a member of the board or a member of senior management. This is because they need the authority within the firm to ensure compliance is paramount. This precludes a contractor or someone external being assigned to the role because it would be difficult for a contractor to have an appropriate level of authority and understanding of the firm’s risks.
Criminal checks and BOOMs
I’m not clear who we need to perform criminal record checks on. Is it for all our clients?
These criminal checks are not performed on clients. They are for beneficial owners, officers and managers (BOOMs) in your firm.
The requirement came in under Regulation 26 of the 2017 Money Laundering Regulations and, since June 2018, our supervised firms have had to make sure there is no BOOM in the firm who has not been approved by ICAEW.
We can only approve a BOOM if they have no relevant unspent criminal convictions. And, to prove that fact, we require all BOOMs to obtain criminal record checks.
Firms should therefore perform a Disclosure and Barring Service (DBS) check for their beneficial owners, officers and managers (those managers responsible for AML compliance in the firm).
We review these checks during onsite monitoring visits, or we may write to the firm and ask it to send the criminal record certificates to us.
How often should you re-check a BOOM?
You only ever need to do the DBS check once; there’s no requirement to update it.
However, Regulation 26 does require firms to ensure they know whether any of their BOOMs have relevant convictions. So, internally you need to implement a policy to satisfy yourself of that on an ongoing basis. This might be done through your own ‘fit and proper’ declarations.
As well as our webpage dedicated to criminal record checks, we have produced an AMLbites video on this subject.
As a sole practitioner, do I have to perform a DBS check?
A sole practitioner is a BOOM, so you do need to do a DBS check.
A motoring offence of speeding doesn't count as a relevant conviction, does it?
No; the relevant convictions all relate to economic crime (for example, fraud). You can check relevant convictions in Schedule 3 of the Money Laundering Regulations.
Sharing intelligence
Do law enforcement agencies share any specific intelligence with ICAEW?
That's a good question. Yes, we do get intelligence from law enforcement agencies, and we're working hard to make sure they share everything that's relevant with us.
It's a fundamental part of our supervisory role to know about any money laundering activity relating to our firms.
Changes to Regulation 52 of the MLRs have allowed wider information sharing. We’ve invested resources in raising our profile with law enforcement agencies and Companies House to fully use this extended Regulation 52 gateway. And there's commitment on all sides to ensure information and intelligence is shared.
We’re also signed up to a range of information sharing networks, including the Financial Crime Information Network, which operates under the umbrella of the Financial Conduct Authority.
SARs
Is there an on-demand webinar or any other guidance on completing a quality SAR?
We have a wide range of resources on completing quality suspicious activity report (SAR). If you visit ICAEW’s AML resources page, you’ll find a dedicated SAR webinar, several SAR-related AMLbites and other guidance.
Our next AML webinar on 13 March 2024 will also cover this subject, including latest insights from the National Crime Agency.
I don’t find the new SARs online reporting system that straightforward. Is there any training or guidance available on completing it?
The UKFIU has shared guidance on how to use the new online reporting tool. Our next AML webinar, on 13 March 2024, will provide more detail on this.
Our client base means it’s unlikely we’ll ever have to submit a SAR. Do we have to register to use the online SARs system until we need to file one?
Historically, firms didn't get a login unless they needed to submit a SAR. But the benefit of the new SARs reporting tool is that the UKFIU intends in future to push messages and risk alerts to reporters, as well as receive SARs through the portal.
For example, it’s possible in future that, if you’re a registered user of the tool, you will directly receive the risk alerts that we currently send out in our AML risk bulletins.
We’d prefer you sign up now because this future functionality will help with sharing information across our sector. We believe firms are also more likely to submit a SAR if they already have a login, whereas not being registered could present a barrier to reporting.
Customer due diligence (CDD) software
Is there a provider that ICAEW recommends for CDD software?
We don't recommend software products for AML compliance. It’s up to firms to assess whether the CDD software is doing what they want it to do in accordance with their own policies and procedures.
If a commercial provider of CDD software says it’s suitable for AML compliance, what reasonable measures could a micro-practice take to check that assertion?
As a practitioner, you need to make sure the product you choose is doing what you expect it to be doing. And one of the issues we find during monitoring visits is that the software product a firm is using isn't providing the services it expects.
Whatever the size of your firm, you need to be clear whether you’re buying access to software that covers know your client (KYC), risk assessment or verification checks. Not all systems do all three. And sometimes we find that firms think their electronic system is recording a risk assessment when it's only doing identity verification of key contacts or beneficial owners.
This means you need to thoroughly check what the software does and doesn’t do. With verification services, for example, providers’ websites usually outline which sources they’re using to do checks. And from that you should be able to get a sense of whether they're doing enough to meet your needs.
If you require more details, get in touch with the provider and ask them direct questions, or check their FAQs. If you sign up for a demo, you can see what is being done, how and why.
The CCAB guidance for the accountancy sector also includes information on what to look for when using electronic verification services.
What is the ICAEW client screening service and how do we access it?
ICAEW offers its members a client screening service, which provides up to three free searches per single firm per week.
The service checks the names of individuals or entities against a variety of watchlists identifying restricted, sanctioned, prohibited and high-risk individuals and businesses. This includes known terrorists, money launderers, fraudsters and PEPs.
We encourage firms to use this service on a risk basis.
Documentation and checklists
Could ICAEW provide samples of documentation a small company could use to support its CDD procedures?
We regularly reflect on what we can do to support firms in understanding AML documentation requirements.
But it's challenging to develop a useful and practical set of sample documents because we operate in a moving landscape. AML risks are constantly evolving, so forms, checklists or other sample documents quickly become dated.
The other danger in putting this type of documentation in the public domain is that it becomes the default position, with some firms using it as a tick-box exercise and missing the real purpose, which is to identify and reduce the specific risks they face.
However, if you watch our past AMLbites and webinars on CDD, we do present and discuss some case study examples of what we would, and wouldn’t, accept as documentation, which might be helpful.
Resources
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