Legal & Policies
Anti-Money Laundering Policy
1. Introduction
CCG Ltd is a UK registered company providing legal services for employment claims. The business of the Company is low risk in relation to money laundering, however in order to prevent any of our services being used (or potentially used) for any money laundering activity, as well as any of our staff being exposed to money laundering, we wish to put in place the following anti-money laundering policy which supplements the anti-money laundering training given to all members of staff.
2. Scope of the policy
The broad definition of money laundering means that potentially anyone could commit a money laundering offence; this includes all employees of the Company, all temporary staff and contractors.
Our policy is to enable the Company to meet its legal and regulatory requirements in a way which is proportionate to the low-risk nature of the business, by taking reasonable steps to minimise the likelihood of money laundering occurring.
All employees must be familiar with their legal responsibilities and failure to comply with this policy may lead to disciplinary action.
3. What is money laundering?
The principal primary legislation is the Proceeds of Crime Act 2002 (POCA), which consolidated, updated and reformed criminal law with regard to money laundering, supplemented by the Terrorism Act 2000 and the Fraud Act 2006. The principal secondary legislation is the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019.
Money laundering can be defined as the process of moving illegally acquired cash through financial systems so that it appears to be from a legitimate source. Money laundering offences include: concealing, disguising, converting, transferring criminal property or removing it from the UK (Section 327 POCA); entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (Section 328 POCA); and acquiring, using or possessing criminal property (Section 329 POCA).
There are also several secondary offences: failure to disclose knowledge or suspicion of money laundering to the Money Laundering Reporting Officer (MLRO); failure by the MLRO to disclose knowledge or suspicion of money laundering to the National Crime Agency; and ‘tipping off’ — whereby somebody informs a person or persons who are, or who are suspected of being involved in money laundering, in such a way as to reduce the likelihood of their being investigated or to prejudice an investigation.
Any member of staff could potentially be caught by the money laundering provisions if they suspect money laundering and either become involved with it in some way and/or do nothing about it. This policy sets out how any concerns should be raised.
4. Money Laundering Reporting Officer (MLRO)
The Company will appoint an MLRO to receive disclosures about money laundering activity and to be responsible for anti-money laundering activity within the Company. The officer nominated to do this is Aidan Loy.
The Company will also appoint a deputy MLRO who will be responsible in the absence of the nominated officer. The deputy MLRO is Ray Trew.
The MLRO will ensure that appropriate training and awareness is provided to new and existing employees and self-employed contractors, and that this is reviewed and updated as required. The MLRO will ensure that appropriate anti-money laundering systems and processes are incorporated by the Company.
5. Suspicions of money laundering
All employees and contractors must, as soon as is practical, report any knowledge or suspicion of (or where there are reasonable grounds to suspect) suspicious activity to the MLRO in the prescribed form as set out in this policy document.
Once the matter has been reported to the MLRO, the employee or contractor must follow the directions given and must not make any further enquiry into the matter.
The employee or contractor must not voice any suspicions to the person(s) whom they suspect of money laundering, as this may result in the commission of the offence of “tipping off”. They must not discuss the matter with others or note on the file that a report has been made to the MLRO, in case this results in the suspect becoming aware of the situation.
6. Consideration of the disclosure by the MLRO
Once the MLRO has received the report, it must be evaluated in a timely manner in order to determine whether:
- There is actual or suspected money laundering taking place; or
- There are reasonable grounds to know or suspect that this is the case; and
- Whether the MLRO needs to lodge a Suspicious Activity Report (SAR) with the National Crime Agency (the NCA).
Where the MLRO concludes that there are no reasonable grounds to suspect money laundering, then consent will be given for any ongoing or imminent transaction(s) to proceed.
Where consent is required from the NCA for a transaction to proceed, then the transaction(s) in question must not be undertaken or completed until the NCA has given specific consent, or there is deemed consent through the expiration of the relevant time limits without objection from the NCA.
All disclosure reports referred to the MLRO and reports made to the NCA will be retained by the MLRO in a confidential file kept for that purpose, for a minimum of 5 years. The MLRO must also consider whether additional notifications and reports to other relevant enforcement agencies should be made.
7. Customer identification and due diligence
Due diligence is performed on all clients, who must provide basic information including photo identification (such as a current passport or driving licence) together with proof of address.
If satisfactory evidence of identity is not obtained at the outset then the business relationship will not proceed any further. A report should be filed with the MLRO who will then consider if a report needs to be submitted to the NCA.
8. Ongoing monitoring
Employees and contractors should review customers at regular intervals to ensure that the risk level and information held on each customer is not only accurate and up to date, but is consistent with the knowledge of the customer and its business. Further due diligence may be required if new people become involved at a customer. Any suspicious activity must be reported to the MLRO.
9. Data protection
Customer details must be collected in accordance with the Data Protection Act 2018. This data can be “processed” as defined under the Data Protection Act 2018 to prevent money laundering and terrorist financing.
10. Record keeping
Customer identification evidence and details of any relevant transaction(s) for that customer must be retained for at least 5 years from the end of any business relationship with that customer.
Internal reporting form
The following form is used internally for reporting suspected money laundering activity to the MLRO. It is reproduced here for reference.
To: Money Laundering Reporting Officer
From: [name of employee]
Title: [title]
Tel No:
Urgent: Yes / No
Date by which response needed:
Details of suspected offence:
Name(s) and address(es) of person(s) involved — if a company, please include details of nature of business.
Nature, value and timing of activity involved — please include full details (what, when, where, how). Continue on a separate sheet if necessary.
Nature of suspicions regarding such activity — please continue on a separate sheet if necessary. Please attach any supporting documentation that may be relevant.
Has any investigation been undertaken (as far as you are aware)? Yes / No — if yes, please include details.
Have you discussed your suspicions with anyone else? Yes / No — if yes, please specify, explaining why such discussion was necessary.
Please set out any other information you feel is relevant.
Signed: ____________________ Dated: ____________________
MLRO use only
Date report received:
Date receipt acknowledged:
Consideration of disclosure:
Action plan:
Outcome of consideration of disclosure:
Are there reasonable grounds for suspecting money laundering activity?
If yes, will a report be made to the NCA? Yes / No
If yes, please confirm date of report to the NCA and complete the box below.
Details of liaison with the NCA regarding the report:
Notice period: from — to
Moratorium period: from — to
Is consent required from the NCA to any ongoing or imminent transactions which would otherwise be prohibited acts? Yes / No — if yes, please confirm full details below.
Date consent received from the NCA:
Date consent given by you to employee:
If there are reasonable grounds to suspect money laundering, but you do not intend to report the matter to the NCA, please set out the reason(s) for non-disclosure (any reasonable excuse for non-disclosure).
Date consent given by you to employee for any prohibited act transactions to proceed:
Other relevant information:
Signed: ____________________ Dated: ____________________