Essential Strategies for Financial Services Compliance, 2nd Edition

Appendix BRoutine Anti-Money Laundering Activities

This appendix contains details of some of the routine anti-money laundering activities most commonly undertaken by the Compliance Officer and/or the Money Laundering Reporting Officer. It is important to remember that the guidance provided on each area provides summary guidance only and you should tailor the procedures and controls within your own firm to the specific requirements of your business activities and customer base.

Activity
KYC approvals for new relationships	207
Financial sanctions	210
Suspicions of money laundering	211
KYC reviews	213
KYC introductions from third parties	214
Third parties completing KYC on your firm	215
Provision of KYC introductions to third parties	215
Patriot Act certificate	216
Politically exposed persons	217
MLRO reporting	218
Counter-terrorist financing	219

Topic	KYC approvals for new relationships
Objective	Ensure that no customer relationships are commenced without KYC first having been completed.
Explanation	KYC stands for ‘know your customer’ and it is the term used to refer to the completion of anti-money laundering due diligence on persons with whom a business relationship will be formed. The KYC process is a key element of the fight against money laundering and terrorist financing activities in the financial markets. It is effectively the first line of defence against money laundering. There are various components to KYC including: proving ...