The Financial Services Authority has published an anti-money laundering self-assessment tool for small firms to ensure they are addressing their legal and regulatory obligations to combat financial crime.
The tool follows the move to a more principles-based approach to anti-money laundering controls, introduced on 1 September, and is designed to encourage firms to adopt practices which mitigate money laundering and terrorist financing risks.
It sets out a series of questions to consider, including:
- Management responsibilities;
- Money laundering reporting;
- Identifying customers;
- A risk-based approach;
- Training; and
- Suspicious activity reporting
For example, under the risk-based approach section it tells firms to consider what risks are posed by customers, what customer and product types require extra due diligence and how to the firm’s procedures mitigate the identified risk.
The Financial Services Skills Council (FSSC) has also announced the new national occupational standards for competence in compliance and anti-money laundering have been approved for industry use.
The anti-money laundering standards require people wishing to attain the accreditation to demonstrate skills such as planing and promoting anti-money laundering policies for the business, developing and monitoring procedures to manage money laundering risks and advising line managers on the scope and implications of the organisation’s anti-money laundering policy.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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