Anti-Money Laundering (AML) Policy & Procedures

1. Introduction

Money laundering is the process of disguising the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses. Singh & Kaur Estate Agents (hereinafter referred to as "the Company") is committed to full compliance with the Anti-Money Laundering (AML) laws and regulations set forth by governing bodies. This policy outlines the procedures that Singh & Kaur Estate Agents will follow to prevent the use of its services for money laundering or terrorist financing purposes.

2. Purpose

The purpose of this policy is to ensure that all employees, agents, and business partners of Singh & Kaur Estate Agents are aware of their responsibilities regarding AML laws and take appropriate measures to detect, prevent, and report suspicious activities related to money laundering and terrorist financing.

3. Scope

This policy applies to all employees, contractors, consultants, and agents of Singh & Kaur Estate Agents who are involved in the sale, purchase, or letting of residential or commercial properties.

4. Key Legislation

The following key legislation and regulations are relevant to this AML policy:

The Proceeds of Crime Act 2002 (POCA)
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
The Terrorism Act 2000
The Criminal Finances Act 2017
The Fifth EU Money Laundering Directive (5AMLD)

Singh & Kaur Estate Agents will ensure that all procedures align with these laws.

5. Responsibilities

5.1. Money Laundering Reporting Officer (MLRO)

Singh & Kaur Estate Agents has appointed a Money Laundering Reporting Officer (MLRO) responsible for overseeing the Company's compliance with AML regulations. The MLRO’s duties include:

Receiving internal reports of suspicious activity.
Assessing and reporting suspicious transactions to the National Crime Agency (NCA).
Ensuring all AML policies and procedures are in place, kept up-to-date, and followed by employees.

MLRO: Tejinder Kaur Soni
Contact Information: info@singhandkaur.co.uk

5.2. All Employees

All employees must remain vigilant and report any suspicious activity to the MLRO. Staf should ensure that they have undergone the necessary AML training and are aware of the potential indicators of money laundering and terrorist financing.

6. Customer Due Diligence (CDD)

Customer Due Diligence (CDD) is required to verify the identity of customers, confirm the legitimacy of funds, and ensure compliance with AML regulations.

6.1. When to Conduct CDD

When establishing a business relationship with a client.
When a transaction exceeds €10,000 (or the local currency equivalent).
When there are suspicions of money laundering or terrorist financing.
When there are doubts about previously obtained customer information.

6.2. Types of CDD

Standard CDD: Requires verifying the customer’s identity and understanding the nature of the business relationship.

Enhanced CDD: Required for high-risk clients, such as politically exposed persons (PEPs) or clients from high-risk jurisdictions. This involves gathering additional information on the client and monitoring the relationship more closely.

6.3. CDD Documentation Requirements

The following documents may be required to verify the identity of clients:

For Individuals: Passport, driver’s license, utility bills (dated within the last three months), bank statements.

For Companies: Certificate of incorporation, board resolution authorizing property transactions, identification of company directors and beneficial owners.

7. Risk Assessment

Singh & Kaur Estate Agents will implement a risk-based approach to identify and assess money laundering risks. Factors that may increase the risk of money laundering include:

Clients from high-risk jurisdictions.
Complex ownership structures.
Unusually large cash transactions.
Transactions involving politically exposed persons (PEPs).

Employees should be aware of these risk factors and report any concerns to the MLRO.

8. Suspicious Activity Reporting (SAR)

If any employee suspects that a client, transaction, or activity is related to money laundering or terrorist financing, they must report it to the MLRO immediately.

8.1. Internal Reporting

Employees must complete a Suspicious Activity Report (SAR) and submit it to the MLRO, who will assess whether a formal report to the National Crime Agency (NCA) is required.

8.2. External Reporting

If the MLRO determines that there is sufficient evidence of suspicious activity, they will fle an SAR with the NCA as per legal requirements.

8.3. Non-Disclosure ("Tipping Of")

It is illegal to inform the client or any other third party that an investigation or SAR has been fled. All employees must avoid any conduct that may lead to “tipping of” the client.

9. Record Keeping

All records related to customer identification, risk assessments, and transactions must be maintained for at least five years from the end of the business relationship or transaction. This includes:

Copies of identification documents.
Transaction records.
Any reports made to the MLRO or NCA.

10. Training

Singh & Kaur Estate Agents will provide AML training to all relevant employees. Training will include:

How to identify suspicious activity.
The steps required for reporting suspicious activity.
The legal obligations of estate agents under AML laws.

Training will be conducted annually and will be updated as necessary to reflect changes in legislation or company procedures.

11. Monitoring and Auditing

The MLRO will conduct regular audits of the AML procedures to ensure compliance. Any deficiencies or areas for improvement identified during the audit process will be addressed promptly. The frequency of audits will depend on the risk level but will occur at least once a year.

12. Penalties for Non-Compliance

Failure to comply with AML regulations can lead to severe penalties, including:

Civil or criminal penalties for the Company.
Personal liability for employees, including fines or imprisonment.
Reputational damage to the Company.

All employees must take their AML responsibilities seriously and ensure full compliance with this policy.

13. Review of Policy

This policy will be reviewed annually or when there are significant changes in relevant laws or regulations. The MLRO will be responsible for ensuring that this policy is updated and communicated to all employees.

Approved by: Tejinder Kaur Soni
Position: Director

By following this AML policy and procedures, Singh & Kaur Estate Agents is committed to ensuring that its operations are not used to facilitate money laundering or terrorist financing activities.