Ongoing monitoring of AML matters in an appointment

IPA Insolvency Practitioner newsletter AML Digest, April 2023

Contents

• David Holland, Chief Inspector and IPA Money Laundering Reporting Officer
• High-risk countries for money laundering purposes: Enhanced Due Diligence
• Proliferation Financing
• SAR reporting
• Licences from OFSI
• Insolvency Practitioner identity fraud and scam websites
• Reporting misuse of bounce back loans
• NCA Amber Alert: High Net Worth Individuals and Tax Evasion (member login required to view)
• AASG alerts (member login required to view)
• Regulation 18 risk assessment reviews
• Reporting of material discrepancies of Companies House records
• Economic Crime Levy
• OPBAS Sourcebook
• How the 2017 Money Laundering Regulations have evolved
• ISS AML training
• OFSI webinar

Details of Reg 28(11) were included in an article in the November 2022 IPA newsletter. As a reminder, due diligence should be kept under review under Reg 28(11) MLR17. As the CCAB Insolvency Guidance advises, where trading has ceased in a formal insolvency estate, it is likely that ingoing CDD may only be required in cases where the office holder becomes aware of suspicious activity or is concerned about the veracity of previous CDD information. For example, if your enquiries and investigations indicate a previous unknown officer of the company – or a shadow director – due diligence work on those individuals must be undertaken to ensure that your due diligence is up-to-date.

IPs are reminded that the AML matters on any appointment should be kept under review to ensure that there is no change to the assessment of the case risk or there are other matters that have arisen that require due diligence work (i.e. an occasional transaction on the purchaser of assets for transactions amounting to €15,000 or more). Part of the review should be considering if the due diligence carried out on a case remains valid, or if any further or updated due diligence may be required.

If there are expired ID documents but the identity of the director, shareholder or relevant person is not in doubt and the risk consideration on the case has not increased, we would expect the review to note the expiration of the ID and to note why updated ID is not required. The position must be kept under review, and if the position is believed to have changed, updated due diligence work must be undertaken.