BTO Solicitors LLP is dedicated to upholding the highest standards of compliance with UK anti-money laundering (AML) and anti-terrorism legislation, including but not limited to, the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, the Proceeds of Crime Act 2002, and the Terrorism Act 2000. Our robust AML policies and procedures are designed to detect and prevent any form of money laundering, terrorism financing, or financial crime, ensuring compliance with all legal and regulatory requirements.
Our Approach to Compliance
As a responsible law firm, we are committed to identifying and verifying the identities and financial structures of our clients. This commitment includes comprehensive procedures for client verification, risk assessment, and ongoing monitoring to protect the integrity of our legal services.
Client and Matter Due Diligence
We conduct thorough due diligence on all new clients and matters (transactions). This includes verifying client identity, understanding ownership structures, and ensuring the legitimacy of the individuals and entities we represent. Our procedures are as follows:
- Identification and Verification: We are required to obtain and verify identification documentation from all new clients and, where applicable, from beneficial owners and individuals instructing on behalf of our clients. This ensures that we understand who our clients are and that they are acting lawfully.
- Documentation Requirements: Original documents are generally required for verification purposes, although we also use third-party electronic verification systems for convenience and efficiency.
- Third-Party Providers: To assist in these checks, we work with reputable external databases and third-party providers who support us in verifying client identities and conducting ongoing monitoring.
- Recovery of Verification Costs: In line with our terms of business, we may charge to recover the costs associated with client verification and due diligence processes.
- Refusal to Act: In the event that we are unable to obtain sufficient documentation or information, we reserve the right to refuse or cease acting in compliance with our legal obligations.
Ongoing Monitoring and Risk Assessment
Our commitment to AML compliance extends beyond initial due diligence. We conduct regular risk assessments and ongoing monitoring of all client relationships to ensure compliance with AML regulations. This may include:
- Updated Documentation: Requesting up-to-date identity documents from clients as required.
- Risk-Based Assessment: Tailoring our ongoing monitoring efforts according to the assessed risk level of each client and matter, as per regulatory guidance.
Understanding Source of Wealth and Funds
As part of our duty to combat money laundering and terrorism financing, we are obligated to establish the source of funds involved in any transactions, as well as the overall source of our clients’ wealth. Please be aware:
- Verification Process: We may require detailed information regarding the origin of the funds used in a transaction or the general source of your wealth.
- Transaction Delays: Delays in providing this information may impact the timing of your transactions; we are not responsible for any delays caused by incomplete or insufficient information.
Suspicious Activity Reporting and Confidentiality Obligations
As part of our regulatory obligations, we are required to report any suspicions or knowledge regarding potential money laundering or financial crime to the National Crime Agency (NCA) and other relevant regulatory authorities. Under the law, we are not permitted to inform you if a report has been made regarding your matter. This requirement may take priority over any duty of confidentiality we owe to you.
- Tipping Off Provisions: The law prohibits us from disclosing that we have submitted a report to the authorities.
- Confidentiality: While confidentiality is paramount to our client relationships, compliance with our reporting duties under the law may, in certain instances, override confidentiality obligations.
Data Retention
In accordance with AML regulations, we are required to retain certain client information for a specified period. All AML-related data collected during the verification process will be securely retained for 5 years following the completion of a transaction or the end of our business relationship, whichever is later.
Staff Training and Internal Controls
We provide regular annual training to all our partners and staff members on the latest AML compliance requirements, including recognising red flags associated with financial crime. Our internal controls and procedures are continually reviewed and updated to ensure they meet or exceed regulatory standards.
Contact
For more information on our AML policies and procedures, or if you have questions regarding our compliance practices, please contact us at compliance@bto.co.uk.