Ongoing monitoring and review of a business relationship – Reg 28(11) Money Laundering Regulations 2017
IPA Insolvency Practitioner newsletter, November 2022
Contents
- Paul Smith, CEO
- Samantha Keen, President
- AML 2021/22 Annual Report and 2022/23 Sector Risk Assessment
- HMRC update
- Lay members required for the IPA’s Anti-Money Laundering Committee, Disciplinary & Appeals Committee and Regulation & Conduct Committee
- IPA Roadshow roundup
- IPA Learning | Corporate Insolvency Review 2022 (CPD: 1.5h)
- Don’t miss the 14th Personal Insolvency Conference (CPD: 6h)
- IPA Awards: Nominees announced!
- Exclusive discounts on training from the IPA and our partners – make savings on essential CPD
- Membership and licence renewals
- NEW member benefit: Discounted meeting facilities from Office Space in Town (member login required to view)
- Save money on your airport parking with APH! (Member login required to view)
- Need new IT products? Claim exclusive IPA membership offers from Dell
- CPI training with BPP – special offer for IPA members (member login required to view)
- IPA exclusive industry update from Insolvency Insider
- Kentish publisher’s archive saved for local history
IPs should be aware of and carry out due diligence checks and identity checks of individuals and companies under Reg 28 of the 2017 Money Laundering Regulations.
However, recent inspection visits have highlighted that the ongoing monitoring and review of customer due diligence is not always carried out. Reg 28(11) advises that:
The relevant person must conduct ongoing monitoring of a business relationship, including:
(a) scrutiny of transactions undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure that the transactions are consistent with the relevant person’s knowledge of the customer, the customer’s business and risk profile;
(b) undertaking reviews of existing records and keeping the documents or information obtained for the purpose of applying customer due diligence measures up-to-date.
In particular sub-para b) needs to be properly reviewed as a number of visits have highlighted that IPs are relying on records and documentation that is out-of-date and the updated/renewed documentation is not requested.
The IPA would recommend that a review of AML documentation and the assessment of the money laundering risk of each case is included in all file reviews undertaken and remedial action to be taken noted on the review form. If there are difficulties in obtaining updated documentation, please ensure that the actions taken are clear and a file note made. This may require a fresh assessment of the case risk assessment to indicate a heightened risk from non-compliance, or where the director/debtor has gone missing.