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Anti-Money Laundering Policy

Introduction

Regulation 19 of The Money Laundering Regulations 2017 require supervised firms to “establish and maintain policies, controls and procedures to mitigate and manage effectively the risks of money laundering and terrorist financing identified in any risk assessment undertaken by the relevant person under regulation 18(1)”.

Wilby Jones is committed to complying with the UK legislation enacted to combat money laundering and to the prevention of criminals from being able to use this firm to help them launder money or to finance terrorism. References to Money Laundering (ML) in this document should be taken to mean Money Laundering, Terrorist Financing or Proliferation Financing (ML/TF/PF). UK Legislation enacted to combat money laundering, terrorist financing or proliferation financing includes the following:

  • The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer)

  • Regulations 2017 (as amended)The Proceeds of Crime Act 2002 (as amended)

  • The Terrorism Act 2000 (as amended)

  • Anti-terrorism, Crime and Security Act 2001

  • Counter-terrorism Act 2008, Schedule 7

  • The Criminal Finances Act 2017

  • The Economic Crime (Transparency and Enforcement) Act 2022

  • The Economic Crime and Corporate Transparency Act 2023

We understand that these policies and procedures are to be read with and should operate alongside the guidance provided in AML Guidance for the Accountancy Sector (AMLGAS). The UK courts must have regard to this approved guidance in deciding whether businesses or individuals affected by it have committed an offence under MLR or Sections 330-331 Proceeds of Crime Act (as amended). It is therefore important that everyone working in this practice is familiar with this. This document and the guidance set out in AMLGAS are applicable to all clients taken on by this practice and applied as required throughout the business relationship and afterwards.

 

Risk Assessment

We conduct and document an annual firm-wide AML risk assessment to identify and evaluate money laundering and terrorist financing risks specific to our business. This risk assessment informs our AML policies and procedures. Adopting a risk-based approach implies the adoption of a risk management process for dealing with ML, TF and PF.
This encompasses:

  • Recognising the existence of the risks
  • Undertaking an assessment of the risks
  • Developing control strategies to mitigate and monitor the identified risks

     

The ML/TF/PF risk assessment for this firm is available separately and this document takes into account the risks identified in relation to this firm. The policies and procedures set out below and included in this document aim to manage and mitigate ML risk. Resources are dedicated to areas of greatest risk.

 

Client Acceptance Criteria

We only work with clients from UK Limited Companies who have undertaken legitimate Research and Development activities and whose ultimate owners can be clearly identified.

Client Due Diligence (“CDD”), including Simplified Due Diligence (“SDD”) and Enhanced Due Diligence (“EDD”)
a. Checks required
CDD and, in some cases, SDD or EDD shall be performed (as set out in Chapter 5 and appendix B of AMLGAS).
We carry out risk-based customer due diligence (CDD) on all new clients before establishing a business relationship. This includes:

  • Identifying and verifying the client's identity using reliable, independent source documents

  • Identifying beneficial owners for corporate clients

  • Assessing the purpose and intended nature of the business relationship

  • Conducting ongoing monitoring of the business relationship and transactions

  • Enhanced Due Diligence (EDD) is conducted for higher-risk clients, including politically exposed persons (PEPs).

In addition to identification and verification requirements as set out in AMLGAS the following checks need to be undertaken.
i. Financial Sanctions and other prohibited relationships checks

As part of the due diligence procedure, the client(s) together with the ultimate beneficial owner(s) or controllers of business clients/trusts must be checked against the following:

ii. Overseas client checks

Where a client is established overseas or either party to a transaction on which advice is being provided is established overseas, the procedure is that the lists of high risk third countries must be consulted. A high risk third country is a country named on either of the Financial Action Taskforce (FATF)’s lists of jurisdictions under increased monitoring and high-risk jurisdictions subject to a call for action. The lists of countries to be checked as required by the legislation can be found here.
In addition, check whether the client is established in or has links to countries with a high score on the Transparency International corruption perceptions index.

iii. Politically Exposed Person (PEP) checks

We are aware of the need to identify any clients who are PEPs (including domestic or non-domestic PEPs, as well as certain family members and known associates) to ensure the appropriate level of EDD is conducted and other appropriate procedures are adopted. These will be identified through Pascal KYC Software. The take on of a PEP must be approved by Darryl Hazelhurst-Jeavons.

iv. Other checks and actions needed

As part of the CDD process we are aware of the need to identify and scrutinise:
(i) any case where—
(a) a transaction is complex or unusually large;
(b) there is an unusual pattern of transaction/s; or
(c) the transaction/s have no apparent economic or legal purpose;
and
(ii) any other activity or situation which we regard as particularly likely by its nature to be related to money laundering, terrorist financing or proliferation financing; We are also aware of the need to take additional CDD/EDD monitoring measures, where appropriate, to prevent the use for money laundering, terrorist or proliferation financing of products and transactions which might favour anonymity. We will ensure that when new products, new business practices (including new delivery mechanisms) or new technology are adopted by the relevant person, appropriate measures are taken in preparation for, and during, the business relationship to mitigate any proliferation financing risks. All staff employed must bring to the attention of the MLRO Darryl Hazelhurst-Jeavons details which they come across of transactions, arrangements of the pattern outlined, or any new ML/TF/PF risks they identify in the business.

v. Other checks and actions needed

When acting for a UK company, unregistered company, LLP or Scottish limited partnership, at onboarding, during ongoing monitoring or updating customer due diligence we will:

  • Obtain proof of the client’s registration on the people with significant control (PSC) register; and

  • Ensure any material discrepancies are reported to Companies House as soon as reasonably practicable. The individual responsible for reporting the discrepancy is MRLO Darryl Hazelhurst-Jeavons and they will make any report required using the guidance included here and in section 5.6 of AMLGAS.

When acting for a trust we will:

  • Obtain an excerpt of the Trust Registration Service (TRS) which contains information on the beneficial owners of the client, or must establish from an inspection of the TRS that there is no such information on the register.
  • Ensure any material discrepancies are reported to HMRC as soon as reasonably practicable. The individual responsible for reporting the discrepancy is MRLO Darryl Hazelhurst-Jeavons and they will make any report required using the guidance included here and in section 5.6 of AMLGAS.

When acting for an overseas entity which is subject to registration under Part 1 of the Economic Crime (Transparency and Enforcement) Act 2022 we will:

  • Obtain an excerpt of the Register of Overseas Entities (ROE) which contains information on the registrable beneficial owners held at the time the business relationship was established, or must establish from an inspection of the ROE that there is no such information on the register.
  • Ensure any material discrepancies are reported to Companies House as soon as reasonably practicable. The individual responsible for reporting the discrepancy is MRLO Darryl Hazelhurst-Jeavons and they will make any report required using the guidance included here and in section 5.6 of AMLGAS.

b. Approval and documentation procedures

Copies of CDD and other checks must be retained on client files in electronic folders.

 

Risk Management

The Money Laundering, Terrorist Financing and Proliferation Financing risks in relation to each client should be assessed at the time the client is taken on and noted on the Pascal KYC Software and electronic client file. In relation to risks specifically identified and set out in the practice risk assessment the following additional measures have been adopted within the practice to mitigate and manage risk:


We will ensure that when new products, new business practices (including new delivery mechanisms) or new technology are adopted by the firm, appropriate measures are taken in preparation for, and during, the adoption of such products, practices or technology to assess and if necessary, mitigate any money laundering, terrorist financing or proliferation financing risks this new product, practice or technology may cause.

 

Ongoing Monitoring

Client due diligence, periodic reviews and risk assessments will be conducted on an ongoing basis and any additional information identified should be dealt with and further information obtained from clients where necessary.
In particular, CDD will be reviewed where:

  • the firm has to contact an existing client under the International Tax Compliance Regulations 2015; or
  • the firm has any legal duty in the course of the calendar year to contact an existing client for the purpose of reviewing any information which:
    • is relevant to the risk assessment for that client (or where appropriate firm wide risk assessment) or
    • relates to the beneficial ownership of the client, including information which enables the firm to understand the ownership or control structure of a legal person, trust, foundation or similar arrangement who is the beneficial owner of the client

A note of the review and the results, such as an updated risk rating, should be indicated on the Pascal KYC Software and electronic client file. We have a process of bi-annual review of CDD and risk.

 

Internal Controls and Communication

We as owners of the business control both ML, TF and PF risk in accordance with this policy and associated procedures document which are communicated to all staff through staff meetings and video training on a regular basis. All staff are required to acknowledge they have received training. (Appendix one).

 

Record Keeping

Record keeping shall be undertaken in accordance with the requirements of MLR and based on the guidance included in chapter 7 of AMLGAS. Records of CDD/EDD are kept on Pascal KYC Software and electronic client file. Records can be identified for destruction after the statutory or longer agreed period by reference to Pascal KYC Software and CRM system. This firm does not enter into reliance agreements with other firms.

 

Reporting - Declaration

It is a requirement that where any Directors know or suspect (or have reasonable grounds for knowing or suspecting) that a person is engaged in money laundering, terrorist, or proliferation financing as a result of information received in the course of the business or otherwise through carrying on that business then they must comply with:

 

i. Part 3 of the Terrorism Act 2000(a); or
ii. Part 7 of the Proceeds of Crime Act 2002(b); and make a Suspicious Activity Report.

This will be considered by the MLRO Darryl Hazelhurst-Jeavons by reference to the guidance in Chapter 6 and appendix C of AMLGAS. Reports should be made to the National Crime Agency online and the relevant link providing advice on the SAR online system is:

https://sarsreporting.nationalcrimeagency.gov.uk/register

All staff must report every instance where they have knowledge or suspicion of ML/TF/PF to the MLRO Darryl Hazelhurst-Jeavons without delay.
This should be done by using the Internal Money Laundering Report Form available to all to staff (Appendix Two). For security reasons reports must be made in writing using the internal form and must be sent to the MLRO using a secure mechanism. An email acknowledgement of receipt of the form will be provided by the MLRO to the member of staff. This should provide minimal information about the incident reported for security reasons. Under no circumstances should the client or any of their representatives be advised that a report has been considered internally or that a suspicious activity report (SAR) has been made by the MLRO.

 

Training

It is a requirement of MLR that regular AML/CTF training is undertaken by the principals in the business, staff members and agents. A written record of the training delivered is also required to be maintained. Arrangements for training are all staff receive comprehensive AML training upon joining the firm and annually thereafter. Training covers AML laws, red flags, CDD procedures, and internal reporting requirements. Individual AML training records are kept on records on PeopleHR.

Policy Date:    17/03/2024
Created By:   Simon Wilby
Reviewed:      Annually or as required