You have recently been appointed as the General Counsel (GC) and MLRO of a financial institution called KS Money Transfer Ltd (“KSMT”). Your company is a licensed Money Service Business (MSB) which advertises itself as specialising in remitting money to Pakistan. The company operates out of very ostentatious premises at 89 Badhuisweg in The Hague. From these premises, the business operates a network of agents across the EU who collect and transmit monies into the KSMT client account in Amsterdam. The sums involved in the operation are substantial – over €200 million passes through the KSMT client each year. Most of this money is in cash. KSMT makes almost daily payments of Euros from its account in Amsterdam to a foreign exchange specialist based in London – TTT Money Corporation Limited (“TTT”). The Euros are then converted into US dollars before being transferred to accounts in Pakistan, according to the instructions given by KSMT. Most of this money is sent directly to Pakistan but a significant proportion is being used to settle third party invoices. You have just started your job and you have familiarised yourself with the risks of money laundering in those parts of the economy that routinely deal in transfers of large amounts of money. You have noted that institutions such as MSBs have been identified as being vulnerable to being used by criminals to launder the proceeds of criminal conduct. Since 2007, an enhanced degree of regulation has been applied to MSBs. In particular, the UK Money Laundering Regulations 2007 (MLRs 2007”) introduced the concept of an MSB. This was defined as “the business of operating a bureau de change, transmitting money (or any representation of monetary value) by any means, or cashing cheques which are made payable to customers”. The MLRs 2007 required MSBs to register with the relevant FIU before conducting such business. As KSMT use TTT as its partner institution in London, it seems sensible to adopt the high standards set down by the UK MLRs 2007 as the basis of your requirements for operations throughout the EU. You are somewhat daunted by the task that you have been set but, fortunately, you have found an excellent website which is very helpful in informing you about the requirements of the MLRs 2007 – https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/387032/mlr_msb.pdfand you decide to use that as the basis of your research. After carrying out some extensive research, you decide that the best way of approaching the task in hand may be to consider (amongst other things) some of the following points:
• Establishing Customer Relationships
• Filing Suspicious Activity Reports
• Identifying what is “suspicious activity?”
• Identifying red flags
• Identifying what Should MSBs look for?
• Procedures for filing currency transaction reports
• Keeping any other records You now put an entry into your diary that you must deliver your memorandum to the CEO by 17:00 Monday the 9th of April. You also make a note that the CEO has told you, confidentially, that he is not an expert in the field of AML and that he needs things to be explained to him in a straightforward way, and with as little jargon as possible.
Requirements: Memorandum of between 800 to 1200 words.
NOTE: Word Count does not include footnotes.
Format Requirements:
– Indicate Header with student name, number, course code and assignment number
– Font: 12 Times New Roman or 10 Arial (9 for the footnotes) – Line Spacing: 1.5
– Indicate page numbers on each page
– Oscola Citation with footnot The attached files are notes which will help you understand the assignment however all answers to the assignment should be based on your own words to avoid plagarism.
NOTE: Quality and clarity in your advice is what is required, rathe r than an unnecessarily long memorandum
