What to do after an AML fine or failed inspection
A fine or a critical inspection letter is unwelcome, but what your supervisor wants next is usually clear: evidence that the gaps have been closed. These are the steps most firms need to take, in order.
This is general information, not legal advice. Your supervisor's letter sets out what applies to you.
Read the letter and write down every deadline
Note exactly which failings your supervisor has identified, the date by which you must pay or respond, and the date by which you can ask for a review or appeal. These windows are short and missing one can close off your options.
Decide whether you accept the findings
If you think the decision is wrong, you can usually ask for it to be reviewed or appeal it. Take advice quickly if you want to do that. Whether or not you challenge the fine, the gaps still need closing.
Put the two core documents in place
The Money Laundering Regulations require a written risk assessment of your own firm and written policies, controls and procedures. Both must reflect your firm, not a generic one, and both must be kept up to date. If either is missing or out of date, start here, because everything else follows from them.
Check your client files
For each client you should hold a written risk assessment and evidence that you identified them and verified their identity, including anyone who owns or controls them. Start with your highest-risk clients and work down. Record the date you completed each one.
Make sure the right people are in the right roles
You need a nominated officer, usually called the Money Laundering Reporting Officer, to receive reports of suspicion. Check your supervisor has been told who that is.
Train everyone and keep a record
Anyone whose work is relevant must know the law, the warning signs for your kind of work and how to report a suspicion. Keep a written record of who was trained, when and on what.
Keep evidence and reply on time
Keep dated copies of everything you put in place. When you reply to your supervisor, say what you have done, when, and what is still in hand with a date for each item.
Plan the next review
Set a date to review your risk assessment and policy, at least once a year and whenever your services, your clients or the law change.
We can help with step 3
We write a personalised AML policy (£99) and firm-wide risk assessment (£199) around your answers, in 3 working days or 6 working hours with express delivery. We don't reply to your supervisor, review your client files or train your staff.