Are you ready for a Compliance Intervention?
As of September, HMRC started their Compliance Interventions and some of you have been in touch to share your experience.
You might say a shared goal we have is in ensuring that any possible intervention you may have is without issue. Included below is a short checklist to ensure you remain in a strong position:
Ensure your Risk Assessment and AML Policy include a date indicating when they were last reviewed. It’s standard practice that these documents are reviewed every 12 months and display a date indicating this: Even if you make no changes.
Your Risk Assessment should adequately reflect the risks you believe you have identified and where possible, it would be wise to include estimated percentage figures addressing these risk categories, for example, who your customers are e.g. Companies or Trusts, where your customers are located geographically and so on.
Ensure you collect the correct information as required under the regulations and that what you receive - how this information is sent to you - and how it is stored are in-line with GDPR. We strongly advise all Art Businesses against the sending and receiving of IDs - and other sensitive information over email.
Ensure that you have evidence of having received formal AML Training on file. It’s important that any member of staff involved in the request, receipt or analysis of information obtained - or stored for Due Diligence - has received training. Training is typically refreshed every 12-18 months, or sooner depending upon the business's policy.
While it’s important to check clients for PEPs and Sanctions, this is not indicative of Due Diligence. Be mindful that the point of the exercise is to review ‘Positive Information’ from a range of sources too, supplementing your analysis and review of the customer.
After having reviewed and assessed your customer, your obligations extend to include a requirement to complete a written risk assessment for each customer. This narrative must demonstrate why you felt it was safe to proceed with the transaction.
Remember, the central component to the act of Due Diligence is to do with defending your right to transact while serving as an important audit trail - and proof - of what was performed on a specific date.