Contents

  1. Introduction to the anti-fraud, anti-bribery, anti-money laundering and anti-corruption policy
  2. Regulatory framework – scope of policy
  3. Responsibilities
  4. Anti-money laundering
  5. Expectations
  6. Reporting fraud, bribery and corruption
  7. Client identification procedure
  8. Record keeping procedures
  9. Risk assessment, management and internal control
  10. Gifts and hospitality
  11. Proactive anti-fraud initiatives
  12. Raising concerns (whistleblowing)
  13. Annex1 – Bexley’s procedural and regulatory framework
  14. Annex2 - statutory framework
  15. Annex3 - London Borough of Bexley - code of conduct
  16. Annex4 - anti-fraud, anti-bribery, anti-money laundering and anti-corruption policy

4. Anti-money laundering

The Proceeds of Crime Act 2002 (the Act), the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (effective from 1st October 2020) place obligations on the Council and its employees to establish internal procedures to prevent the use of their services for money laundering.

Money Laundering is an act falling within section 340(11) of POCA and the Money Laundering Regulations 2007. Money laundering is also an offence under section 18 of the Terrorism Act 2000. The term ‘money laundering’ is a phrase used in respect of a number of offences involving the proceeds of crime or terrorist funds. The following actions constitute money laundering: 

  1. concealing, disguising, converting, transferring or removing criminal property from England and Wales, or from Scotland, or from Northern Ireland
  2. becoming concerned in an arrangement in which someone knowingly or suspects facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person
  3. acquiring, using or possessing criminal property

These are the primary money laundering offences and thus prohibited acts under the legislation.

There are also three secondary offences: failure to disclose knowledge or suspicion of money laundering where this knowledge or suspicion is acquired in the course of work (section 330 of the Act) and tipping off and prejudicing an actual or potential investigation (sections 333A and 342 of the Act)

Tipping off is where someone informs a person or people who are, or who are suspected of being involved in money laundering, in such a way as to reduce the likelihood of their being investigated or prejudicing an investigation.

Whilst the risk to the Council of contravening the Act and the Regulations is very low, the obligations impact on certain areas of Local Authority business and require Local Authorities to establish internal procedures to prevent the use of their services for money laundering. This Policy outlines the Council’s and its subsidiary companies’ responsibility to comply with the relevant legislation.