AML / CTF

What are the new laws?
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 require those providing certain financial services to:

• Identify their customers before providing certain services;
• Report certain transactions; and
• Report suspicious matters.

What is Money Laundering and Terrorist Financing?
In practical terms, money laundering is the process whereby criminals attempt to hide and disguise the true origin and ownership of the proceeds of their criminal activities, thereby avoiding prosecution, conviction and confiscation of the criminal funds. The various stages to achieve this are termed placement, layering and integration.

Terrorist financing includes the financing of terrorist acts and of terrorists and terrorist organisations. It involves a person providing or collecting funds where the person is reckless as to whether the funds will be used to facilitate or engage in a terrorist act.

What is Know Your Customer (KYC) and what documentation is required?
KYC or the ‘Know Your Customer’ procedure is ensuring that customers are properly identified and that they understand the risks they may pose verifying the identity of customers using reliable and independent documentation.

To comply with our obligations under new legislation, LMW Invest must collect certain information about each new investor in our funds, supported by relevant identification documents. Examples include passports and drivers licences for individuals, and evidence of registration for entities such as companies. The information and documents investors need to provide must be submitted at the time of applying for an investment in a LMW Invest fund on or after 31 January 2008.

Do copies of identification documents have to be certified, and can advisers certify them?
All client identification documents must be certified – LMW Invest does not accept originals. In order to certify client documents, an adviser needs to have been an Authorised Representative for at least two years. Others authorised to certify the documents are listed on the new AML /CTF Verification Form.

What records do advisers have to keep?
Advisers will need to retain copies of client records for seven years. A record includes a copy of the fund application form and all client identification documents provided.

How will your privacy be protected?
Please refer to our Privacy Policy.

To download the AML/CTF checklist form, please click here.

To download the AML/CTF verification form, please click here.