5.1 Cash payments
No payment to the council will be accepted in cash if it exceeds £5,000. (NB: Cash is defined as including notes, coins or travellers’ cheques in any currency).
5.2 Reporting
Any employee who suspects money laundering activity must report their suspicion promptly to the nominated MLRO. If you would prefer, you can discuss your suspicions with the MLRO first.
5.3 Employees must follow any direction and/or guidance given by the MLRO and must not themselves make any further enquiries into the matter. They must not take any further steps in any related transaction without authorisation from the MLRO.
The employee must not disclose or otherwise indicate their suspicions to the person suspected of money laundering. 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.
5.5 The MLRO must promptly evaluate any disclosure to determine whether it should be reported to the appropriate external authorities.
5.6 The MLRO will commit a criminal offence if they know or suspect, or have reasonable grounds to do so, through a disclosure being made to them, that another person is engaged in money laundering and they do not disclose this as soon as practicable to the appropriate external authorities.
5.7 Identification of clients
Where the council is carrying out ‘relevant business’ and, as part of this:
- forms an ongoing business relationship with a client; or
- undertakes a one-off transaction involving payment by or to the client of 15,000 Euros (or the equivalent in Sterling) or more; or
- undertakes a series of linked one-off transactions involving total payment by or to the client(s) of 15,000 Euros (or the equivalent in Sterling) or more; or
- it is known or suspected that a one-off transaction (or series of them) involves money laundering
Then the Client Identification Procedure, which follows, must be followed before any business is undertaken for that client.
(NB: ‘Relevant Business’ is defined as the provision ‘by way of business’ of: advice about tax affairs; accounting services; audit services; legal services; services involving the formation, operation or arrangement of a company or trust; or dealing in goods wherever a transaction involves a cash payment of 15,000 Euros or more.)
5.8 Client identification procedure
Where the ‘relevant business’ is being provided to another public-sector body, then you must ensure that you have signed, written instructions on the body’s headed paper before any business is undertaken.
5.9 Where the ‘relevant business’ is not a public-sector body, then you should seek additional evidence of identity, for example:
- checking with the organisation’s website to confirm their business address
- conducting an on-line search via Companies House
- seeking evidence from the key contact of their personal identity and position within the organisation
5.10 Record keeping
Where ‘relevant business’ is carried out then the client identification evidence and details of the relevant transactions(s) for that client must be retained for at least five years.