Money Laundering Regs for non executive director

Money Laundering Regs for non executive director

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Scenario : limited company in the regulated sector with one non executive director - this non executive director never meets clients and I assume is therefore not a 'relevant employee' for MLR regs. However, as I refer to a director of the business, is there still an obligation to apply all the new regulations relating to training etc (due to holding the position of director), despite them not being 'client facing' in any way at all?
Anon

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David Winch
By David Winch
14th Dec 2007 11:44

Non-executive director

I assume the business is in the regulated sector but not regulated by the FSA, nor a money service business, nor a trust or company service provider.

I do not think there is an obligation to train every director just because he is a director. But also I do not think that training should be limited to just 'client facing' staff.

In an accountancy practice for example I would expect staff who examine a customer's records and prepare analyses, etc would need to be trained. In a solicitor's office I would expect the cashier / bookkeeper to be trained.

Does that answer your question?

David
www.MLROsupport.co.uk

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By AnonymousUser
14th Dec 2007 15:49

thanks
many thanks for your advice - it's been very helpful.

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By AnonymousUser
14th Dec 2007 12:23

a bit more information may be needed
the business is an accountancy practice - it is a company service provider -as registered offices held for clients - the director referred to does not carry out any client work at all (and never sees clients or clients records) , and is only involved in a practice administration role.

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David Winch
By David Winch
14th Dec 2007 13:29

Company service provider?

Is the accountancy practice supervised (or to be supervised) by HMR&C or by one of the professional bodies?

David

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By AnonymousUser
14th Dec 2007 14:30

supervised by HMRC (as there is a mix of associations involved for the directors- with no overall control).
(However, the non executive director mentioned is not a member of any professional association).

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David Winch
By David Winch
14th Dec 2007 15:47

In that case . . .

If HMR&C consider your firm to be a trust or company service provider (which I hope they would not on the basis that this is marginal and incidental to your main business) then all directors will need to be "fit and proper" individuals. Essentially this means not having any 'black marks' such as significant criminal convictions (e.g. money laundering - not motoring). "Fit and proper" in this context has nothing to do with knowledge, skill or competence.

In any event if the non-exec is purely an admin guy (or girl) then I cannot see any requirement for he / she to have ML training - but just think what fun he / she will be missing!!

David

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By User deleted
17th Dec 2007 21:17

Money Laundering.
The new regulations from 17/12/07 may apply where the company has to make it's own risk assessment regarding the potential of money laundering inclusion.
No doubt you might exclude this individual in such risk assessment - but of course the onus is then on your company.

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David Winch
By David Winch
17th Dec 2007 22:34

Response to Chris

Chris

I rather think the risk assessment relates to the type of clients you have and the types of service you provide to them.

I don't think it relates to the type of admin staff you employ where they have no contact with clients, clients' records or clients' assets.

David
www.MLROsupport.co.uk

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