1. Money Laundering Felicity Banks Head of Business Law, ICAEW

2. ICAEW 2007 Regulations – What has changed?

3. ICAEW 2007 Regulations – What has changed : Nothing Much

4. ICAEW 2007 Regulations – What has changed : Requirement to be supervised Risk based approach (risk assessment and implementation) Tightening of due diligence (PEPs, beneficial owners …) Removal of gold plating (changes in wording of Regulations)

5. ICAEW Systems Requirements Customer due diligence – ID for new clients Record keeping Reporting procedures Communication and training Establish and maintain systems appropriate to forestall and prevent money laundering ….

6. ICAEW Systems Requirements Customer due diligence – ID for ALL clients Customer due diligence – Continual monitoring Risk Approach – Risk profile for firm -Risk based CDD Monitoring and management of compliance

7. ICAEW What to Report? Any crime which has resulted in proceeds (even if small)

8. ICAEW What to Report? Any crime which has resulted in proceeds (even if small) – Not attempted fraud or theft that did not come off – Not tax evasion, until after the tax should have been paid and was not

9. ICAEW What to Report? Any crime which has resulted in proceeds (even if small) – Not unlawful but non-criminal behaviour even if redress could be due – Not parking fines (unless it is a criminal offence in Guernsey not to pay them)

10. ICAEW What to Report? Proceeds of any crime which the suspect knows or suspects has happened If a client does not know that he has stepped the wrong side of the law, there is no possibility of money laundering (until you tell him)

11. ICAEW Risk based CDD “On the basis of documents, data or information obtained from a reliable independent source” Specific provisions on some points Otherwise, based on the firms’ own risk assessment

12. ICAEW Risk based CDD Politically Exposed Persons Client not present Beneficial ownership ------------------ “Normal Risk” clients Existing clients Reliance on others

13. ICAEW GUIDANCE AML Guidance for the Accountancy Sector Prepared and Issued by CCAB Addressed to accountants, auditors, tax advisers, insolvency practitioners, trust and company service providers in the UK Available from www.ccab.org.ukwww.ccab.org.uk

14. ICAEW GUIDANCE AML Guidance for the Accountancy Sector CIoT and other supervisory bodies also apply this Guidance in the UK. Channel Isles authorities also welcome to use it.

15. ICAEW OTHER CHANGES Privilege reporting exemption Electronic ID The Confidentiality of SARs More Representations Etc. etc.

16. ICAEW OTHER UK GUIDANCE CIoT -www.tax.org.uk/www.tax.org.uk/ JMLSG -www.jmlsg.orgwww.jmlsg.org SOCA – www.soca.gov.ukwww.soca.gov.uk ICAEW - www.icaew.com/moneylaundering

17. ICAEW What is it all about?

18. ICAEW What is it all about? The process by which criminals retain, disguise and conceal the proceeds of their crimes The process by which funds are raised, consolidated and retained for use in financing terrorism

19. ICAEW What is it all about? IFAC - Introduction and Fundamental Principles 100.1 A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest.

20. ICAEW What is it all about? Professional accountants provide relevant information to those entitled to it, enabling them to perform their legitimate functions

21. ICAEW What is it all about? Professional accountants provide relevant information to those entitled to it, enabling them to perform their legitimate functions All society benefits when fair laws are enforced fairly. Accountants should assist law enforcement by reporting money laundering

22. ICAEW What is it all about? To report effectively and professionally, you need to: – have systems to ensure the whole firm knows what they are doing, and do it – know who your clients are, and roughly what they are doing

23. ICAEW AML – What is it for:

24. ICAEW AML – What is it for: Not just organised crime and terrorism – also the proceeds of crime more generally, including tax evasion

25. ICAEW AML – What is it for: Not just organised crime and terrorism – also the proceeds of crime more generally, including tax evasion But Al Capone was jailed for tax evasion – don’t underestimate the value of your money laundering suspicion reports

26. Money Laundering Felicity Banks Head of Business Law, ICAEW