1. Who, What, When and How Much? A Conveyancer’s Guide to Source of Funds
Katie Jackson – Honne
Who, What, When and How Much? A Conveyancer’s Guide to Source of Funds

2. Covering:
Who, what, when & how much? - Checking source of funds, and taking a risk based approach
Real life scenarios
Impact of the 4th ML Directive

3. Who? You:
25% conveyancers affected by AML scams TLS: ID less important Money Laundering Regulations - Reg 8 Proceeds of Crime Act – 327 – 329 (money knows or suspects) (failure to disclose) R v Griffiths (2006) ‘….to all professional people involved in the handling of money and …to observe scrupulously the terms of this legislation and the inevitable penalty that will follow failure so to do’.b AML scams

4. Who? Clients: Client PEPs Sales / Neg equity Gifts / loans
All contributions
Gifts / loans
PEPs
Sales / Neg equity
Other side?

5. Who? Other side?:
POCA: If knowledge ‘came to them in course of business in regulated sector’

6. What?: Bank statements (start 3-6 months) Invoices
Accountants’ statements
Wage slips
Company accounts (profit & loss statement)
Employer letter (overtime, tips, etc)
Benefits – award letter or benefit statement
Contracts (eg. rental agreements showing income)
Your own enquiries (google)
Does it all match? Does it add up?

7. How much?:
Over 3-5K Series of payments Risk based approach

8. When?:
MLR Reg 9 – Verify ID at outset Reg 8 – source of funds during course of relationship Better to ask at the start….

9. Risk based approach: Who is the client?
Certain countries & foreign clients
PEPs
Complex structures & nominee directors
Transactions between companies & individuals not at arms’ length
Non face to face
Cash funding / cash intensive businesses
Public funding - private purpose
E money (eg. Paypal; Google Wallet; Apple Pay; Bitcoin)
Hawala / Chop systems
Financial centres
Offshore banks
Other contributors to funds

10. Real life scenarios:
Money in suitcase
Andrew Tidd

11. Panama Papers (allegedly):
Pres Putin
Bank Rossiya
Swiss Lawyers
Mossack Fonseca
Sandalwood
Mr R
Sold rights to $200m loan and $5m repayments for $1
$3m loan assigned for $1

12. 4MLD:
Register beneficial ownership – tracing source easier? 10,000 EUR CDD limit Focus on risk Brexit?

13. Covered:
Who, what, when & how much? - Checking source of funds, and taking a risk based approach Real life scenarios Impact of the 4th ML Directive

14. Thanks – We are Honne:
Great value risk & compliance help & support SRA, CLC, CILEx, and AML File reviews CPD Training Accounts checks Mock regulator visits Regulator liaison Q&A Always available - No expensive monthly contracts – Friendly service