*PART 1 – PUBLIC DOCUMENT
AGENDA ITEM No.
TITLE OF REPORT: REVIEW OF THE ANTI-FRAUD AND CORRUPTION STRATEGY AND
ANTI-MONEY LAUNDERING POLICY
REPORT OF THE HEAD OF FINANCE, PERFORMANCE & ASSET MANAGEMENT
1.
SUMMARY
1.1
The purpose of this report is for members of the Audit and Risk Committee to receive
and endorse the following revised documents which form an integral part of the antifraud element of the Council’s corporate governance framework.


Anti-Fraud and Corruption Strategy
Anti-Money Laundering Policy
2.
FORWARD PLAN
2.1
This report does not contain a recommendation on a key decision and has not been
referred to in the Forward Plan.
3.
BACKGROUND
3.1
A review of the above documents has been undertaken in order to comply with the
Council’s requirement to regularly review corporate policies.
3.2
Both documents had been in existence for a number of years and this review took the
opportunity to both update the content of the policies and fundamentally review their
format.
3.3
Input and comment was obtained from HR, IT and Legal Services and the Performance
and Risk Manager. The policy documents of a range of public bodies were obtained in
a search for best practice relating to anti fraud and corruption. Updated guidance
published by CIPFA, ‘Proceeds of Crime (Anti-Money Laundering) Practical Guidance
for Public Service Organisations’, was used as the basis for the content review of the
Anti-Money Laundering Policy.
3.4
A third strand of the Council’s anti-fraud framework is the Confidential Reporting Code
(Whistleblowing Policy). A review of this Code is currently being undertaken by Legal
Services. A separate report seeking endorsement of the revised Code will be
presented to the Standards Committee once the current review has been concluded. It
is possible that as a result of this review, minor changes may need to be made to the
D:\684101300.doc
-1-
attached documents. Although not anticipated, members of this Committee will be
informed should significant changes be required.
4.
CONSIDERATIONS
4.1
This review resulted in the following significant changes being made:
Anti Fraud and Corruption Strategy
a)
b)
c)
4.2
An additional paragraph has been included at Section 2. Strategy Objectives, to
strengthen the stated purpose of the Strategy.
Section 5. Prevention, has been expanded to include details of preventative
measures relating to Internal Control Systems and Internal Audit and Information
and Communications Technology. The Section relating to External Audit has been
broadened to included all external agencies and the separate sections relating to
Risk Management and Benefits Fraud are now included in the section relating to
Management measures.
All references to the investigative process have been removed and are now
included in the relevant Fraud Response Plans.
The Fraud Response Plan and IT Fraud Response Plan are not appended to this
Strategy as they are not of a strategic nature providing rather details of the objectives,
key steps and scope of an investigation.
Anti-Money Laundering Policy
a)
b)
c)
d)
Titles and names of responsible officers have been updated to reflect the current
officer arrangements within the Council.
The definitions of money laundering at Section 3 have been expanded to include
reference to the Financial Services and Markets Act 2000 and the Terrorism Act
2000.
Cash collection has been included as an area potentially vulnerable to money
laundering in Section 4. The Council’s Response.
All references to working practices and procedures have been removed and are
included in the Money Laundering Guidance Notes.
4.3
The Money Laundering Guidance Notes and Pro-forma Disclosure Report are not
included in this report as they are not of a strategic nature but rather outline how both
individuals and identified service areas within the Council should act to prevent money
laundering and should respond if they have a concern about potential or known money
laundering activity.
5.
LEGAL IMPLICATIONS
5.1
Within the terms of reference of the Audit and Risk Committee are “To monitor council
policies on…the anti-fraud and anti-corruption strategy…” and “To monitor the effective
development and operation of risk management and corporate governance in the
council.”
D:\684101300.doc
-2-
5.2
Local authorities are required to have a corporate governance framework in place and
to respond to the six dimensions of corporate governance as outlined in the
CIPFA/SOLACE Framework for Corporate Governance 2007, namely:-

Focusing on the purpose of the authority and on outcomes for the community
and creating and implementing a vision for the local area.

Members and officers working together to achieve a common purpose with
clearly defined functions and roles.

Promoting values for the authority and demonstrating the values of good
governance through upholding high standards of conduct and behaviour.

Taking informal and transparent decisions which are subject to effective
scrutiny and managing risk.

Developing the capacity and capability of members and officers to be effective.

Engaging with local people and other stakeholders to ensure robust
accountability.
5.3
Although not directly covered by the requirements of the Money Laundering
Regulations 2007, guidance from CIPFA indicates that a council should comply in a
proportionate manner to the underlying spirit of the legislation and regulations.
6.
FINANCIAL AND RISK IMPLICATIONS
6.1
The existence of clear and well advertised policies relating to fraud and corruption and
money laundering allows the Council to mitigate against the following risks:




Non-compliance with relevant legislation, regulations and guidance
Failure of individuals to report concerns due to an absence of reporting mechanism
Allegations of unfair treatment due to the absence of an agreed and publicised
investigation process
Poor investigative and reporting processes due to the absence of agreed
procedures
7.
HUMAN RESOURCE AND EQUALITIES IMPLICATIONS
7.1
There are no human resource or equalities implications arising from this report.
8.
RECOMMENDATIONS
8.1
It is recommended that members of the Audit and Risk Committee endorse the revised
policy documents attached as appendices to this report.
9.
REASONS FOR RECOMMENDATIONS
D:\684101300.doc
-3-
9.1
Recommendation 8.1 has been made to ensure that North Hertfordshire District
Council maintains a robust anti fraud and corruption framework and is able to respond
in a consistent manner to all allegations of fraud and corruption and concerns about
suspected or known money laundering activity.
10.
APPENDICES
Appendix 1
Appendix 2
11.
Anti-Fraud and Corruption Strategy
Anti Money Laundering Policy
CONTACT OFFICERS
Andy Cavanagh – Head of Finance, Performance and Asset Management, Tel; 01462
474243
email: [email protected]
Margaret Mulkerrin – Audit Manager, Tel: 01462 474242
email: [email protected]
12.
CONTRIBUTORS
Alan Cooper – Auditor, Tel 01462 474344
email: [email protected]
Anthony Roche, Senior Lawyer, Tel: 01462 474588,
email: [email protected]
Kerry Shorrocks - Head of Human Resources, Tel: 01462 474224,
email: [email protected]
13.
BACKGROUND PAPERS
Proceeds of Crime (Anti-Money Laundering) Practical Guidance for Public Service
Organisations – CIPFA
D:\684101300.doc
-4-
APPENDIX 1
ANTI-FRAUD AND CORRUPTION STRATEGY
1.
INTRODUCTION
1.1
North Hertfordshire District Council (the Council) takes its duty to ensure proper
stewardship of public money very seriously. The success of this Strategy depends on
the Council’s promotion of a culture of openness and accountability within which
Members and all staff apply the highest standards of ethical behaviour and are willing
to voice concerns they may have about an aspect of the Council’s work.
1.2
The Council expects that individuals and organisations with which it has contact, will
act towards it with integrity and without thought or actions involving fraud or corruption.
2.
STRATEGY OBJECTIVES
2.1
This Strategy is designed to outline the Council’s position with regard to the:







Promotion of high standards of ethical conduct
Prevention and deterrence of fraud and corruption
Detection and investigation of allegations of fraud and corruption
Prosecution of offenders
Recovery of any losses
Maintenance of strong systems of internal control
Training and awareness raising
3.
DEFINITIONS
3.1
For the purposes of this document, fraud and corruption are defined as:
Fraud
"Fraud encompasses an array of irregularities and illegal acts
characterised by intentional deception with intent to make a gain or to
cause a loss, or to expose another to a risk of loss."
Corruption
"Corruption is the offering, giving, soliciting or acceptance of an
inducement or reward that may influence the action of a Member or
employee of the Council."
4.
THE COUNCIL'S CULTURE
4.1
The Council is committed to creating an organisational culture that focuses on the
prevention of fraud and corruption. To this end, it expects Members and employees’
working behaviour to match the standards laid out in their respective Codes of
Conduct.
4.2
The Confidential Reporting Code or ‘Whistleblowing Policy’ provides a mechanism for
reporting serious concerns about any aspect of the Council's work. Concerns reported
in this way are treated in the utmost confidence and properly investigated. The Code
D:\684101300.doc
-5-
seeks to reassure individuals that they will be protected from possible reprisals if they
make disclosures in good faith.
4.3
The Anti-Money Laundering Policy and Guidance Notes names the Council’s Money
Laundering Reporting Officer and details procedures in place to enable an individual to
report knowledge or suspicion of money laundering.
4.4
The Council formally assesses its exposure to potential fraud risks and makes
appropriate entries in its risk register. The Risk Management Group reviews the entries
periodically and makes recommendations should existing controls be deemed
inadequate.
5.
PREVENTION
5.1
There are six main strands to the measures taken by the Council to minimise the
opportunities for fraud and corruption. These are as follows;






5.2
Employee measures
Member measures
Management measures
Relationships with External Agencies
Internal Control Systems and Internal Audit
Information and Communications Technology measures
Employees
5.2.1 Effective recruitment is key in the fight against fraud and corruption. Written references
are obtained prior to appointing all staff (permanent, temporary or contract). Where an
appointment requires specific qualifications, HR manages the process for ensuring that
stated qualifications are verified.
5.2.2 Once appointed, all staff must follow the Council’s policies, procedures and codes.
Professionally qualified employees must comply with the ethics and standards of the
professional body to which they belong.
5.2.3 In instances where conduct fall below expectations, the Council’s Managing
Misconduct, Improving Performance and Attendance Procedures are instigated to
encourage the achievement and maintenance of agreed standards.
5.3
Members
5.3.1
Elected Members have a duty to the citizens of North Hertfordshire to ensure that the
Council uses its resources prudently and in accordance with the law. In their elected
capacity they must adhere to the Member Code of Conduct and in particular the
declaration of personal interests and the receipt of gifts and hospitality.
5.3.2 Complaints regarding an alleged breach of the Code are taken to the Standards
Committee. Any person can report a breach of the Code directly to the Council’s
Monitoring Officer.
D:\684101300.doc
-6-
5.4
Management
5.4.1 Within their areas of responsibility, managers must carry out control risk assessments
(including an assessment of fraud risk) and implement control arrangements designed
to prevent and/or detect fraud.
5.4.2
To ensure such arrangements are effective and behaviours meet expectations,
managers must make arrangements to ensure that all staff receive induction and ongoing training relevant to their role. Periodic checks must be carried out to ensure that
agreed procedures are being followed.
5.4.3
Managers must strive to create an environment in which their staff feel able to
approach them with any concerns they may have about suspected irregularities or
control weaknesses.
5.4.4
The Benefits Investigation Team has been established to investigate all alleged benefit
fraud. Where an employee is suspected of involvement in a fraudulent claim the team
liaises with HR and Audit and Consultancy Services to ensure the correct internal and
external procedures are followed.
5.4.5
The Performance and Risk Team submit and/or handle insurance claims made by the
public and employees. Where a fraudulent or exaggerated claim is suspected, the
Council’s external insurers are notified. The external insurer then conducts an
investigation and presses criminal charges if appropriate.
5.5
External Agencies
5.5.1 Arrangements are in place and continue to develop to facilitate the exchange of
information between the Council and other Agencies on national and local fraud and
corruption activity. Information is exchanged in compliance with the Data Protection
Act, other relevant legal requirements and the Council’s Data Sharing Protocol.
5.5.2
External audit is an essential safeguard of the stewardship of public money. The
standard of its work is governed by the Code of Audit Practice as required under the
Local Government Finance Act 1982.
5.5.3
The Code emphasises management's role in preventing and detecting fraud and
corruption and the external auditor's role in reviewing and assessing the effectiveness
of the Council's arrangements in meeting this responsibility.
5.6
Internal Control Systems and Internal Audit
5.6.1 There are a range of controls in place that individually and collectively contribute to an
effective control environment and hence to the prevention, detection and investigation
of fraud and corruption.
5.6.2 The Council has a Constitution incorporating a Scheme of Delegation, Financial
Regulations and Contract Procurement Rules. These act as the framework for financial
control within the Authority and must be adhered to by all staff when carrying out their
D:\684101300.doc
-7-
duties.
5.6.3 The Chief Finance Officer has a statutory duty under Section 151 of the Local
Government Act 1972 to make arrangements for the proper administration of the
Council’s financial affairs. Financial codes of practice and accounting, departmental
procedures and monitoring arrangements have been developed and distributed to all
relevant staff.
5.6.4 Audit and Consultancy Services support managers in the development of efficient and
effective systems of internal control by independently appraising the integrity of all
internal control systems on a rolling, risk-assessed basis. The only exception to this is
the audit of key financial systems which are completed annually. Identified weaknesses
in internal control (which may include controls to prevent or detect fraud) are reported
to management who must ensure that corrective action is taken in a timely manner.
5.6.5 The authorities and responsibilities of Audit and Consultancy Services are laid out in
the Council’s Financial Regulations. The function’s Strategy and Terms of Reference
detail in practical terms how these are met.
5.6.6
The Audit Manager is responsible for ensuring that all internal audit staff are
appropriately trained and skilled. Auditors must have sufficient knowledge of the area
under review to be able to recognise that fraud may have been committed, or that the
potential for fraud exists.
5.7
Information and Communications Technology measures
5.7.1 The increased use of information and communications technology in the delivery of
Council services brings with it new opportunities for the perpetration of fraud. The
Council has adopted procedures and systems that minimise these risks and improve
the chances of fraudulent activity being detected. These include the adoption of an IT
Security Policy, an Internal and Email Usage Policy, a Password Policy and IT auditing.
6.
DETERRENCE
6.1
The Communications Section seeks to ensure that the results of any investigation
undertaken, including prosecutions, are reported in the local press as a deterrent to
others. In all cases where the Council has suffered a financial loss, it seeks to recover
the loss and any associated recovery costs and advertise this fact.
6.2
Updates of this Strategy and details of anti-fraud and corruption activity by the Council,
are publicised in order to make employees and the public aware of the Council’s
commitment to taking action on fraud and corruption, when it occurs.
7.
DETECTION AND INVESTIGATION
7.1
Unusual events or transactions can be symptoms of fraud or attempted fraud.
Concerns about any irregularity, be it financial or otherwise, can be raised as follows:
a)
b)
With an immediate manager or supervisor;
With a Strategic Director;
D:\684101300.doc
-8-
c)
d)
With the Audit Manager; or
Reported under the Council's Confidential Reporting Code.
7.2
Concerns raised through routes a) or b) above, must be communicated as soon as
possible, to the Strategic Director of Finance, Policy and Governance who will inform
the Audit Manager as appropriate.
7.3
Concerns raised through the Council’s Confidential Reporting Policy are initially
explored by the Council’s Monitoring Officer. S/he will determine based on the
information provided whether or not an investigation would be in the public interest.
The decision taken and the reasons for it will be formally recorded and communicated
to the individual who raised the concern.
7.4
With the exception of concerns relating to Council Tax or Housing Benefit, which are
investigated by the Investigations Team, and those relating to potential Housing Fraud
which are investigated by the Housing Needs team in consultation with Legal Services,
matters raised may be:






investigated by internal audit;
investigated by management under a relevant human resources policy;
investigated by the Council’s insurers
referred to the Police;
referred to the external auditor; or
subject of an independent inquiry.
7.5
All alleged frauds passed to Audit and Consultancy Services are investigated following
the Council’s Fraud Response Plan.
7.6
This approach ensures that a consistent approach is applied to any investigation
following the discovery or notification of an irregularity. Additionally, it provides a focal
point for the gathering of information and noting of trends and access to officers who
have research experience and can bring objectivity and independence to the
investigative process.
7.7
The Fraud Response Plan sets out the objectives, key steps and scope of an
investigation. Where detailed examination of computer files and equipment is required,
the IT Fraud Response Plan which supplements the Fraud Response Plan is followed.
7.8
The outcomes of an investigation are reported to the Strategic Director and Head of
Service concerned. Where evidence collected substantiates the allegation made, the
Strategic Director of Finance, Policy and Governance and the investigating officer, in
conjunction with the Monitoring Officer determine if and when the Police should be
formally notified. This decision will be reported to the Chief Executive. All losses
identified are reported to the Council’s Performance and Risk Manager.
7.9
Regardless of whether or not a case is passed to the Police, the Council may elect to
apply its Managing Misconduct Procedure. This will be done in instances where the
outcome of an investigation indicates improper behaviour. Internal action must not be
delayed pending the results of any Police investigations, as the standards of criminal
D:\684101300.doc
-9-
and employment law are different. Guidance on the Managing Misconduct Policy is
available from Human Resources.
7.10
Recommendations relating to working practices which were made as a result of an
investigation, must be implemented immediately to prevent the reoccurrence of
malpractice.
7.11
The Council’s external auditor has powers to independently investigate fraud and
corruption. Its services may be used when it is felt important for an investigation to be
seen publicly as external to the Council.
8.
AWARENESS AND TRAINING
8.1
The success of this Strategy and hence the Council’s credibility with regard to its
proclaimed stance on anti-fraud and corruption depends largely on staff and Members’
awareness of the Council’s arrangements.
8.2
The Council has in place induction and on-going training programmes which apply to
Members and all staff, be they permanent, temporary, casual, or agency.
8.3
It is a manager’s responsibility to ensure that staff are adequately trained to perform
their duties. Training needs are identified through the appraisal process and should be
detailed in individuals’ Learning and Development Plans. Staff who ignore training and
guidance may face the possibility of disciplinary action.
8.4
Training to Members includes ethics training. Specific training is provided to members
of the Standards Committee on their role in assessing and determining breaches in the
Code of Conduct for Members.
9.
SANCTION AND REDRESS
Members
9.1
The Council utilises its Standards Committee to promote high standards and regulate
the conduct of Members. It takes action as required by the Standards Board for
England.
Staff
9.2
Staff who commit fraud against the Council, its clients or the public purse are subject to
disciplinary action. If appropriate, prosecution or civil proceedings are instigated.
9.3
Employees found guilty of gross misconduct at a disciplinary hearing will be summarily
dismissed. As with all disciplinary matters, disciplinary cases involving allegations of
fraud, corruption and financial malpractice will be handled on the basis of the balance
of probability.
9.4
The decision to refer the matter on for prosecution, is taken by the Strategic Director of
Finance, Policy and Governance and the investigating officer, in conjunction with the
Monitoring Officer.
D:\684101300.doc
- 10 -
9.5
System weaknesses identified as part of an investigation are addressed in an agreed
action plan which the relevant service area manager is responsible for implementing.
Audit and Consultancy Services monitor implementation of agreed actions and report
progress to the Audit and Risk Committee.
9.6
Should an investigation identify a failure of supervision, appropriate disciplinary action
is taken against those responsible.
Contractors
9.7
A contractor is contractually required to take all reasonable steps to prevent any
fraudulent activity by its staff, shareholders, suppliers or sub-contractors in connection
with the receipt of monies from the Council. It must notify the Council immediately if it
has reason to suspect that a fraud has, is or is likely to occur.
9.8
Should a decision to investigate the matter be taken, the most appropriate of the routes
detailed in paragraph 7.4 will be followed. Any report produced at the conclusion of an
investigation must be formally accepted by the manager whose responsibility
encompasses the area of the investigation. Appropriate action (disciplinary or other)
must then be taken.
The Public and external organisations
9.9
In all cases, the Council seeks to recover any fraudulently obtained amounts, and
where necessary and appropriate, its costs incurred in doing so. It will utilise all means
available to recover these amounts including freezing assets, confiscation orders, civil
litigation and general debt recovery.
9.10
In all instances, the Performance and Risk Manager will explore the possibility of
recovering losses from the Council’s insurers.
10.
10.1
CONCLUSION
This Strategy is a statement of the Council’s attitude towards, and procedures for
tackling, fraud and corruption. Its expands the following key elements of the Council’s
anti-fraud and corruption culture:




10.2
The Council will not tolerate abuse of its services
Each case will be examined on its merits and a decision to act will only be made
once all the facts have been established
Action will be taken against individuals found guilty of fraud or corruption
Recovery of losses and the cost of that recovery will be sought
To keep its anti-fraud and corruption arrangements abreast of future developments in
both prevention and detection techniques, the Council maintains them under
continuous review.
D:\684101300.doc
- 11 -
10.3
11.
11.1
Responsibility for the review of this Strategy rests with the Audit Manager in
consultation with the Strategic Director of Finance, Policy and Governance and the
Monitoring Officer.
EQUALITIES STATEMENT
Each case of suspected fraud or corruption is unique and must be considered on its
own facts and merits. In line with the Council’s Corporate Equalities Strategy, there will
be no discrimination against any individual or group of people on the grounds of ethnic
or national origin, sex, religious beliefs, political views, sexual orientation or disability.
Review date: 31 December 2013
Responsible Officer: Audit Manager
D:\684101300.doc
- 12 -
APPENDIX 2
ANTI-MONEY LAUNDERING POLICY
1.
Introduction
1.1
Although local authorities are not directly covered by the requirements of the Money
Laundering Regulations 2007, guidance from CIPFA indicates that they should comply
with the underlying spirit of the legislation and regulations.
1.2
North Hertfordshire District Council is committed to the highest possible standards of
conduct and has, therefore, put in place appropriate and proportionate anti-money
laundering safeguards and reporting arrangements.
2.
Scope of the Policy
2.1
This Policy and its accompanying Guidance Notes (see Appendix A) apply to all
employees, whether permanent or temporary, and Members of the Council.
2.2
Its aim is to enable employees and Members to respond to a concern they have in the
course of their dealings for the Council. Individuals who have a concern relating to a
matter outside work should contact the Police.
3.
A definition of Money Laundering
3.1
Money laundering describes offences involving the integration of the proceeds of crime
or terrorist funds into the mainstream economy. Such offences are defined under the
Proceeds of Crime Act 2002 as the following ‘prohibited acts’:
a) Concealing, disguising, converting, transferring or removing criminal property from
the UK
b) Becoming involved in an arrangement which an individual knows or suspects
facilitates the acquisition, retention, use or control of criminal property by or on
behalf of another person
c) Acquiring, using or possessing criminal property
d) Doing something that might prejudice an investigation e.g. falsifying a document
e) Failure to disclose one of the offences listed in a) to c) above, where there are
reasonable grounds for knowledge or suspicion
f)
3.2
Tipping off a person(s) who is or is suspected of being involved in money
laundering in such a way as to reduce the likelihood of or prejudice an investigation
Provided the Council does not undertake activities regulated under the Financial
Services and Markets Act 2000, the offences of failure to disclose and tipping off do not
apply. However, the Council and its employees and Members are, as are any
individuals, subject to offences a) to d) above and the full provisions of the Terrorism
Act 2000.
D:\684101300.doc
- 13 -
3.3
The Terrorism Act 2000 made it an offence of money laundering to become concerned
in an arrangement relating to the retention or control of property likely to be used for
the purposes of terrorism, or resulting from acts of terrorism.
3.4
Although the term ‘money laundering’ is generally used to describe the activities of
organised crime, for most people it will involve a suspicion that someone they know, or
know of, is benefiting financially from dishonest activities.
3.5
Potentially very heavy penalties (unlimited fines and imprisonment up to fourteen
years) can be handed down to those who are convicted of one of the offences above.
4.
The Council’s response
4.1
The Council has responded in the following way to the legislation and regulations.
Identified areas potentially vulnerable to money laundering
4.2
The following are areas of Council’s activity that could be vulnerable to money
laundering:




Treasury Management
Council Tax and NNDR
Sale of Council-owned land or properties
Cash collection
Relevant guidance notes have been developed in response to the identified risk.
Established client identification procedures
4.3
Although not a legal requirement, the Council has developed formal client identification
procedures which must be followed when Council land or property is being sold. These
procedures require individuals and if appropriate, companies to provide proof of identity
and current address.
4.4
If satisfactory evidence is not obtained at the outset of a matter, then the transaction
must not be progressed and a Disclosure Report must be submitted to the Money
Laundering Reporting Officer.
4.5
All personal data collected must be kept in compliance with the Data Protection Act.
Appointed a Money Laundering Reporting Officer (MLRO)
4.6
The Council has designated the Head of Finance, Performance and Asset
Management as its Money Laundering Reporting Officer (MLRO). He can be
contacted on 01462 474243 or at [email protected].
4.7
The Council’s MLRO deputies are the:
D:\684101300.doc
- 14 -


4.8
Head of Revenues and Benefits, contactable on 01462 474247 or at
[email protected]; and
Strategic Director of Finance, Policy and Governance, contactable on 01462
474297 or at [email protected].
A Deputy MLRO should be contacted when the MLRO is absent or in instances where
it is suspected that the MLRO himself is involved in a suspicious transaction.
Implemented a reporting procedure for suspicions of money laundering
4.9
All suspicions should be immediately reported to the MLRO on a Disclosure Report
(see Appendix B). It is the role of the MLRO to promptly evaluate the evidence
presented and determine whether or not reporting onwards to the Serious and
Organised Crime Agency (SOCA) or other nominated body is required. The individual
making the report must not investigate the matter further and must follow any directions
the MLRO gives.
4.10
In cases where legal professional privilege may apply, the MRLO must liaise with the
Corporate Legal Manager in deciding whether or not the matter should be reported to
SOCA or other nominated body.
4.11
Individuals identified as relevant to the investigatory process must co-operate with any
investigation undertaken by SOCA or by any other nominated body.
4.12
Information relating to a suspicion of money laundering must not be maintained on a
client file as clients can request sight of such information under the Freedom of
Information Act.
Training
4.13
Officers considered likely to be exposed to suspicious situations, will be made aware of
these by their senior officer and provided with appropriate training.
4.14
Additionally, all employees and Members will be familiarised with the legal and
regulatory requirements relating to money laundering and how they affect both the
Council and themselves.
4.15
Notwithstanding paragraphs 4.13 and 4.14 above, it is the duty of officers and
Members to report all suspicious transactions whether they have received their training
or not.
5.
Conclusion
5.1
Given a local authority’s legal position with regard to the legislative requirements
governing money laundering, the Council believes that this Policy represents a
proportionate response to the level of risk it faces of money laundering offences.
Review date: 31 December 2013
Responsible Officer: Head of Finance, Performance and Asset Management
D:\684101300.doc
- 15 -