Overview
As a senior manager, it's your responsibility to implement proper controls and procedures to manage the risks associated with your business and its customers.
HMRC regulations require you to carefully assess the level of risk your business faces, particularly in relation to money laundering and terrorist financing, and take appropriate measures to mitigate these risks.
You should give extra attention to high-risk situations, which may require enhanced procedures. These risks depend on several factors, including:
The type and identity of the customer
The nature of the business relationship
The jurisdiction involved
The nature of the product or transaction, especially if it's large, complex, or unusual with no clear economic or legal justification
In contrast, for low-risk customers, your measures can be more moderate. Your risk assessment will guide the steps you take to manage money laundering and terrorist financing risks.
How does Checkboard help you stay compliant?
Checkboard provides essential tools to help your business remain compliant with HMRC regulations by:
Performing thorough customer due diligence checks and ongoing monitoring
Identifying when a customer or beneficial owner is a politically exposed person (PEP) or related to one, and applying the necessary enhanced due diligence* measures
Offering guides and resources to help you recognise money laundering and terrorist financing risks, and understand the importance of reporting any suspicious activity
Ensuring accurate and up-to-date records are maintained
Key actions to include in your policies and procedures
The following actions must be included in your business policies and procedures, and kept under regular review:
Ensure your identification and acceptance procedures account for the risk profile of both sellers and buyers
Take additional steps in high-risk scenarios, such as requiring senior management approval for transactions involving politically exposed persons
Assess low-risk situations carefully, document your justification, and ensure it aligns with your overall risk assessment
Maintain robust monitoring systems and controls that reflect the risk characteristics of both sellers and buyers within your business
By implementing these measures, you can ensure your business complies with HMRC regulations and effectively manages the risks of money laundering and terrorist financing.
For further details, refer to the official guidance on the Gov.uk website.