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Anti Money Laundering

The University is committed to embracing the underlying principles behind the money laundering legislation, including compliance with The Proceeds of Crime Act 2002 and the Money Laundering (ML), Terrorist Financing (TF) and Transfer of Funds (information on the Payer) Regulations 2017 (the “MLR2017”), and has established the following procedures to ensure compliance with the legal requirements and that the appropriate reporting process is in place. 

Contents 

(a) Definition
(b) Policy
(c) Training
(d) Risk Assessment
(e) The key areas to be aware of 

(a) Definition 

 Money laundering is the term used for a number of offences involving the proceeds of crime or terrorist funds, as follows: 

  1. Concealing, disguising, converting, transferring or removing criminal property. 
  2. Becoming involved in an arrangement in which someone knowingly or suspects, facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person. 
  3. Acquiring, using or possessing criminal property.​​​​​​​ 

It is likely in the University context that this will involve a suspicion that someone is benefiting from dishonest activities, and there is no de minimis list for the amount involved. 

(b) Policy 

The University's policy is to do all in its power to prevent wherever possible the institution or its employees being exposed to money laundering, to identify where it is most likely to occur and to comply with all legal and regulatory requirements. Every member of staff has a responsibility to report suspected infringements of the law on money laundering in the same way as they do for reporting fraudulent acts by members of staff. Staff should try to ensure that the source of any funds is known and legitimate. No payment should be accepted in the knowledge that all or part of it is to be passed to a third party unless the payer is known to be legitimate and the transaction is in the normal course of University business. Normal financial control and audit requirements must be applied. 

If a member of staff becomes suspicious that money laundering may be taking place, they can raise it with their line manager but then report it immediately in writing on the Notification of a suspicion of money laundering form to the Chief Financial Officer who, following a reasonable level of enquiry, may require that the incident is reported to the National Crime Agency (NCA) by raising a Suspicious Activity Report (SAR), if grounds for suspicion remain. A record of all matters reported to Finance will be retained for audit purposes. 

It is a criminal offence to: 

  1. Conceal information on money laundering. 
  2. Assist in an act of money laundering. 
  3. Acquire benefit from money laundering. 
  4. Fail to disclose one of the above offences. 
  5. Disclose to another person that a report of suspected money laundering has been made. 

A suspicion that something exists is more than a mere idle wondering whether it exists or not; it is a positive feeling of actual apprehension or mistrust, amounting to a 'slight opinion, but without sufficient evidence' (Queensland Bacon PTY Ltd v Rees [1966] 115 CLR 266 at 303, per Kitto J). 

Suspicion is personal and arises from your own reaction to circumstances. However, you must bear in mind that the test applied in the law is not just whether you were actually suspicious, but whether you had reasonable grounds to be suspicious. If you do not report suspicion when you had reasonable grounds to do so, you may expose yourself to criminal liability. 

(c) Training 

Although all staff have a duty to ensure money laundering does not occur, there are areas of activity and duties where the risk of coming across a situation, which is suspicious, is higher. These include in particular areas responsible for handling money, collecting debts or making sales. Staff which fall into these categories will be provided with training and have the opportunity to raise questions.  

(d) Risk Assessment 

The risk of money laundering occurring in a university environment is probably low, but it is serious enough to warrant all staff being made aware of their obligations and responsibilities to report suspicious incidents. It is our responsibility to know our customer, not always easy in our business. 

(e) The key areas to be aware of include: 

  1. Any transaction where a large amount of cash is offered, where evidence of the payer's identity and address are not provided 
  2. Where payment is made by an unknown party, apparently unrelated to, say, the student 
  3. Where an amount significantly larger than the amount due is paid, and a refund requested, in effect a “circular” transaction 
  4. Where amounts are paid and the intention is for part of the payment to be passed on to another party 
  5. Where a company doing business with the University is unable or unwilling to provide supporting documentation 

This list is not exclusive and money-laundering activity can take many forms. 

Any refunds must be returned to source. The relationship between the payer and the individual/organisation, on behalf of which payment is made, should be understood and recorded.  

Receipts of cash are restricted to £3,500 for student fees, and £500 for all other receipts.  Only in exceptional circumstances may these limits be overridden by the Director of Finance, the Director of Student Administration (for student fees) or the Financial Controller up to the declaration limit of €10,000. Where the amount is higher than €10,000 the Director of Finance must authorise the receipt. 

Further advice can be obtained from Financial Services.