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ML 4.3 External reporting

ML 4.3.1G

The purpose of this section is to ensure that reports made to the MLRO are considered and that, where appropriate, a report is made available to NCIS. The duty to make external reports is one of the functions that some groups or larger relevant firms may decide can be delegated by their MLRO to suitably qualified staff, as described in ML 7.1.3 G.

ML 4.3.2R
  1. (1)

    A relevant firm must take reasonable steps to ensure that any report required by ML 4.1.2 R (1) (Internal reporting), other than a report made to a person authorised by the Director General of NCIS, is considered by the MLRO, or his duly authorised delegate, and that if, having considered the report and any relevant know your business information to which he has sought access, the MLRO or his duly authorised delegate:

    1. (a)

      knows or suspects; or

    2. (b)

      has reasonable grounds to know or suspect;

    that a person has been engaged in money laundering, he reports promptly to NCIS.1

  2. (2)

    In reporting to NCIS, an MLRO, or his duly authorised delegate, must have regard to any order under section 339 of the Proceeds of Crime Act 2002 prescribing the form and manner in which a disclosure must be made to NCIS and to any guidance issued by NCIS on the form and manner of reporting.2

ML 4.3.3E
  1. (1)

    To take reasonable steps as required by ML 4.3.2 R, the relevant firm should:

    1. (a)

      require the MLRO to consider a report under ML 4.1.2 R (1) in the light of all relevant information accessible to or reasonably obtainable by the MLRO;

    2. (b)

      permit the MLRO to have access to any information, including know your business information, in the relevant firm's possession which could be relevant; and

    3. (c)

      ensure that where the MLRO, or his duly authorised delegate knows or suspects, or has reasonable grounds to know or suspect, that a person has been engaged in money laundering, he makes a report which is not subject to the consent or approval of any other person.1

  2. (2)

    Contravention of (1) may be relied on as tending to establish contravention of ML 4.3.2 R.

  3. (3)

    Compliance with (1) may be relied on as tending to establish compliance with ML 4.3.2 R.

ML 4.3.4R

A sole trader with no employees who knows or suspects, or has reasonable grounds to know or suspect, that a client of his, or the person on whose behalf the client is acting, is or has been engaged in money laundering must make a report promptly to NCIS.1