Anti-Money Laundering Guidance

At the start of this year the FSA confirmed that it will be streamlining its rules by removing the Money Laundering sourcebook and replacing it with the principle based rules found in the Senior Management Arrangements, Systems and Controls sourcebook (SYSC). These rules came into effect on the 31st August 2006 and details the controls that firms must have in place to prevent financial crime and money laundering. The emphasis of which has been put onto the senior managers to put in place suitable controls.

All staff working in the financial services industry, regardless of their actual position, has a statutory duty to be aware of the need to prevent money laundering. Although the FSA does not impose specific rules on firms advising on mortgages and non-investment insurance in respect of money laundering, as a regulated firm it is important that systems and controls are maintained to prevent business in these areas being used for financial crime. Firms also have an explicit legal requirement under the terms of the Proceeds of Crime Act 2002 to maintain vigilance in respect of any evidence that a transaction is associated in any way with the proceeds of criminal activity.