Anti-Money Laundering Policy

This Anti-Money Laundering Policy is an EXAMPLE only and is intended to be a starting point for you to implement the requirements set out in the legislation and guidance. This template is designed for a low risk, unregulated business only. It is not intended to be used for a regulated business or by those involved in advising regulated entities, such as accountants. 

This policy is intended to help make staff aware of money laundering, help prevent money laundering taking place, and explain what to do if money laundering activity is suspected. It has been reviewed in light of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019.

What is money laundering and why have a policy?

Money laundering is the process of moving illegally acquired cash through financial systems so that it appears to come from a legitimate source. Criminals may try to conceal the origin and true ownership of the proceeds of their activities in order to turn money from “dirty” to “clean”.

Even for low risk businesses, it is important to have procedures and policies in place to help identify and prevent money laundering.

Key legislation referenced in this policy

Businesses should be aware of the following legislation:

• Proceeds of Crime Act 2002 (POCA);
• Terrorism Act 2000; and
• the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019.

Regulated sector and suitability of this template

POCA applies to everyone, but certain money laundering obligations apply only to businesses operating in the “regulated sector”. If you are in the regulated sector, you are required to put in place anti-money laundering policies, controls and procedures to help prevent your business being used to launder money or fund terrorism, including identifying and verifying ownership and control structures of customers.

This template is not suitable for regulated businesses, or for those involved in advising regulated entities.

Enhanced due diligence and higher risk situations

The 2019 Regulations prescribe mandatory enhanced due diligence measures when a transaction appears to be “high risk”. This template includes wording intended to cover such situations, even where a business is otherwise low risk and outside the regulated sector, as a matter of good practice.

If enhanced due diligence is required, customers may wish to seek independent specialist legal advice due to the serious civil and criminal penalties that can result from failure to comply.

Businesses that should not use this policy

As the 2019 Regulations widen the scope of “obliged entities”, this template is not suitable for businesses operating platforms related to virtual currencies, those who deal in the art market, or those who handle or issue pre-paid electronic cards.

Estate Agents and Lettings Agents should use the AML policy templates specifically created for them in the Property portfolio of templates.

What this Anti-Money Laundering Policy covers

• scope of the policy and what constitutes money laundering;
• appointment and role of the Money Laundering Reporting Officer (MLRO);
• how to respond to suspicions of money laundering and how disclosures are considered;
• customer identification, due diligence and ongoing monitoring;
• data protection; and
• record keeping.

This document is also available in the Business folder.

Anti-Money Laundering Policy is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.