MLRO’s Duties and Responsibilities

MLRO’s Duties and Responsibilities

An MLRO is a Money Laundering Reporting Officer this is a nominated person who is responsible for ensuring that transactions that arouse suspicions of money laundering or terrorist financing are reported to the Revenue Commissioners.

The MLRO has a duty to include as much relevant information as possible about the client and the activity which is suspicious.

The MLRO must ensure that the content of the SAR includes as much useful information as possible: on the identity of the suspect (client’s occupation/company’s business and National Insurance etc.); as much detail as possible to explain the basis on which the suspicion or knowledge of the money laundering is founded; the whereabouts of the illicit property if known.  

Additional information to be included in a SAR: Name of who the reporter, the date, who is suspected or information assisting identification process, name of victim(s) if applicable, other parties involved and how, facts of the matter giving rise to suspicion, whereabouts of any criminal property, what the involvement with the business is e.g. providing book-keeping service. Without good information it is difficult for law enforcement to provide consent to act if the MLRO has requested consent. The MLRO must make a report as soon as practical once a suspicion arises.  

A decision by the MLRO not to report externally must be documented and have sufficient reason and detail outlined describing how the decision was made. The details of this should be filed separately from the actual client file to ensure the client is not tipped-off accidentally.  

If the practice has already carried out an act for a client without realising that the act could amount to a money laundering offence, the MLRO should immediately make an authorised disclosure under POCA (2002). 

The MLRO should ensure that once a SAR is submitted with a request for consent that the practice does not do the act in question until the notice period has elapsed (i.e. 7 working days from day after SAR is made).  

If consent to act is refused by the NCA or relevant FIU, the MLRO must wait until the ‘moratorium period’ has elapsed which is a period of 31 days starting with the day on which the person receives notice that consent to the doing of the act is refused. 

A relevant firm must make its MLRO responsible

 

  • Making external reports to NCA 

 

  • Making annual reports to the relevant firm’s senior management
  • Obtaining and using national and international findings
  • Receiving internal reports
  • Taking reasonable steps to access any relevant know your business information
  • Taking reasonable steps to establish and maintain adequate arrangements for awareness and training (whether by himself or someone else)

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