In this instalment of our AML guidance blog series, we will be discussing the key officers you need to appoint within your organisation and their responsibilities. There are a number of crucial individuals within your practice that will have specific responsibilities within their roles, and also require approval and authorisation in order to undertake the role. 👩💼👨💼✅
Beneficial Owners, Officers and Managers (BOOMS) of your firm are any persons who ultimately owns or controls the body corporate, or owns more than 25% of the shareholding. This can relate to owners, directors, chief executives, committee members etc within the firm. BOOM’s require pre approval prior to undertaking their duties within the firm according to Schedule 3 of the Regulations; Acting as a BOOM without prior approval can lead to a conviction which carries a two year prison sentence. The BOOM approval application will be dealt with internally by your nominated supervisor who should assess all information against the test. 🔐
The Money Laundering Reporting Officer (MLRO) will need to be someone with sufficient seniority to make decisions, in a position of responsibility with access to client files, and have the full support within their role by senior management. The MLRO can be a member of the Board or senior management body, however you will have to confirm that they will have sufficient time and resources to be effective in the role. The nominated person will be responsible for ensuring that information pertaining to knowledge or suspicion, or reasonable grounds is disclosed the NCA (POCA 2002). They will also have to consider whether and in what form these disclosures to the NCA should also be reported to the Board or senior management. The role will also encompass an annual report highlighting changes to AML risk to practice, advised improvements for the coming year, progress on any past improvements, results of any internal audits, resourcing considerations, AML training undertaken and regulatory changes from AML authorities for example. 💰
In addition to the MLRO, you will also need to appoint a Money Laundering Compliance Officer (MLCO) where required due to the size and nature of your business (R21(1)(a)). This person can be the same as that who carries the MLRO title as well, however this is not advised in large, complex practices where there is a greater degree of risk exposure. They must be a Board level person, who can support and work alongside the MLRO in ensuring all AML efforts in the practice have oversight and full engagement at the highest levels. They nominated person should have an in depth knowledge of the business, sufficient seniority to undertake the role effectively, and the authority to ensure the firms total compliance. ⚙
Intuitive Legal are on hand to provide ongoing support and advice to your firm’s officers; We can act as a supportive function to give both you and your nominated persons an added layer of security. ⚖
