Money Laundering Policy

Anti-Money Laundering, Counter Terrorism & Anti-Tax Evasion Policy

Background

On 26 June 2017, the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 came into force in the UK. These rules are more commonly referred to as the Money Laundering Regulations 2017. They replace the Money Laundering Regulations 2007.

In these Regulations, “estate agent” means a firm or a sole practitioner, who, or whose employees, carry out estate agency work, when the work is being carried out.

Bribery, corruption, proliferation financing, tax evasion, money laundering and terrorist financing are illegal and unethical. EVC Property Management Ltd is committed to ensuring that it has adequate controls to counter money laundering activities and terrorist financing activities.

EVC Property Management Ltd (“The firm”) is registered with HMRC for anti-money laundering supervision under the Money Laundering Regulations.

Statement

It is the policy of this firm, that all staff at all levels shall actively participate in preventing the services of the firm from being exploited by criminals and terrorists for money laundering and terrorist financing purposes. It is the policy of this firm to prevent the involvement of those acting on the firms behalf in the criminal facilitation of tax evasion.

This participation of all members of staff has its objectives:

• Ensuring the firms compliance with all applicable laws, statutory instruments of regulation and requirements of the firms supervisory authority
• Protecting the firm and all its staff as individuals from the risks associated with breaches of the law, regulations and supervisory requirements.
• Preserving the good name of the firm against the risk of reputational damage presented by implication in money laundering and terrorist financing activities.
• Making a positive contribution to the fight against crime and terrorism.

To achieve these objectives, it is the policy of this firm that:

• Every member of staff shall meet their personal obligations as appropriate to their role and position of the firm.

• Neither commercial considerations nor a sense of loyalty to clients shall be permitted to take precedence over the firms anti money laundering commitment.
• Recruitment of all new staff shall include the assessment of the skills, knowledge and expertise of the individual and their conduct and integrity as required under regulation 21(2) of the Money Laundering Regulations. This screening will take place prior to appointment and at regular intervals during the employment of all staff.

• The firm shall appoint a board level director to be responsible for the anti-money laundering compliance. The firm shall notify the supervisory authority and supply the name of the responsible director.

• The firm shall appoint a Money Laundering Reporting Officer (MLRO) and inform the supervisory authority of their name. The MLRO shall be afforded every assistance and cooperation by all members of staff in carrying out the duties of their appointment.

• The firm shall carry out a business wide assessment of the risks of money laundering and terrorist financing to which the firm is subject including facilitation of tax evasion risk.

• The firm shall carry out a business wide assessment of the risks of proliferation financing to which the firm is subject.

• The firm shall mitigate and manage identified risks by implementing proportionate controls and applying appropriate levels of client due diligence.

• The firm shall protect personal data by ensuring that whenever processing is planned or takes place, data is proportionate to the risk represented by the business being conducted, secure, and is retained only for as long as necessary to meet relevant legal obligations. The extent of processing is limited to that required for AML/CTF purposes and the execution of clients businesses.

• The firm shall establish and maintain documented, proportionate policies and procedures including controls which outline the positive actions to be taken by staff to prevent money laundering, terrorist financing and the facilitation of tax evasion in the course of their work. The MLRO shall keep these under review to ensure their continuing appropriateness.

MLRO

The officer responsible for the relevant person’s compliance with these Regulations is Emma Catterall and this has been confirmed to our supervisory authority; HMRC.

Registration

EVC Property Management Ltd (“The Company”) is registered with HMRC for anti-money laundering supervision under the Money Laundering Regulations.

Business-Wide Assessment

Company Policy

It is the policy of this firm to identify and assess the money laundering and terrorist financing risks represented by the business we conduct so that we can mitigate that risk by applying appropriate levels of client due diligence and by designing and implementing proportionate controls.

Controls and Procedures

1. The firm shall assess the money laundering risk represented by our clients and the business conducted according to the following levels.

• The range normally dealt with by the firm, requiring the firm’s normal level of client due diligence
• An exceptionally high level of risk requiring an enhanced level of client due diligence
• And if appropriate a negligible level of risk requiring only simplified due diligence.

2. The firm shall identify and maintain lists if risk factors including those required by the Money Laundering Regulations and factors connected with the facilitation of tax evasion) relating to our clients, products or services, transactions, delivery channels and geographic areas of operation.

3. The firm shall conduct a regular assessment of the money laundering and terrorist financing risks to which the business is subject, taking into account the risk factors that have been identified.

4. The firm shall ensure that assessment of exposure to the risk of criminally facilitating tax evasion takes place as part of the business wide risk assessment.

5. In addition to appropriate due diligence the firm shall design and implement proportionate controls to mitigate and manage effectively the risks identified via the assessment process.

6. The firm shall update the risk assessment annually and at any intervening time that new and emerging risks need to be addressed and new information supplied by our supervisory authority needs to be reflected.

Risk Assessment of Clients and Services

Company Policy

It is the policy of this firm to assess the money laundering and terrorist financing risks represented by each client and the business being conducted, to include facilitation of tax evasion risk as appropriate, so that we can mitigate that risk by applying an appropriate level of client due diligence.

Controls and Procedures

1. The money laundering or terrorist financing risk represented by each client will be assessed:

• During the new client acceptance process, before any work is undertaken.
• Whenever the firms process of ongoing monitoring indicates that a change in the business or operating environment of an established client may represent a change in money laundering risk.

2. Client risk assessment shall be carried out by the responsible director who will determine appropriate due diligence measures in respect of each client based on

• The firm’s business wide risk assessment
• Assessment of the level of risk arising in any particular case.

3. A record must be made of the assessment of individual client relationships confirming that the firms business wide risk assessment has been taken into account and any other relevant factors considered.

Categories of Risk People

High – people most likely to give rise to suspicion – PEPS, especially from countries where corruption is rife.

Normal – people not especially likely to give rise to suspicion – UK residents with verified identity and unexceptional employment status.

Low – people least likely to give rise to suspicion – Local residents known personally to our staff with long established and verified employment status.

Categories of Organisation 

High – organisations most likely to give rise to suspicion – Entities incorporated in notorious offshore tax havens where beneficial ownership and control are impossible to establish.

Normal – organisations not especially likely to give rise to suspicion – UK registered companies with directors, shareholders and PSC’s whose identities can be verified.

Low – organisations least likely to give rise to suspicion – Public sector bodies and institutions.

Categories of Risk Transactions

Transactions most likely to give rise to suspicion – Large payments in cash where bank transfer cheque or card would be normal.

Transactions not especially likely to give rise to suspicion – Payments by online bank transfer where the source,  destination, dates and amounts are consistent with the stated business.

Transactions least likely to give rise to suspicion – Payments to public sector bodies where the dates and amounts are consistent with the given explanation.

Categories of Risk Arrangements

Arrangements most likely to give rise to suspicion – Setting up a complex structure that hides beneficial ownership and control.

Arrangements not especially likely to give rise to suspicion – Incorporating a UK registered limited company where all PSCs are identified.

Arrangements least likely to give rise to suspicion – Setting up a personal pension plan with appropriate monthly contributions.

Categories of Risk Assets

Assets most likely to give rise to suspicion – Securities  held in an opaque offshore vehicle with no verifiable beneficial ownership or provenance for their funding.

Assets not especially likely to give rise to suspicion – High value items acquired individually over a long period where the purchase costs were proportional to the persons legitimate income.

Assets least likely to give rise to suspicion – A residential property acquired through a mortgage with deposit and monthly payments proportionate to the persons verified legitimate resources.

Customer due diligence

Company Policy

It is the policy of this firm to obtain information enabling us to assess the purpose and intended nature of every client’s relationship with the firm. This Know Your Clients Business Information will enable us to maintain our assessment of the ongoing money laundering risk and notice changes or anomalies in the clients arrangements that could indicate money laundering.

Know Your Clients Business Information sought from clients will include

• The client’s reason for choosing this firm.
• The purpose and business justification behind the services the client is asking the firm to provide.
• The provenance of funds introduced, or assets involved in the clients arrangements.
• The tax jurisdiction within which the client operates and the processes used by the client for declaring and paying taxes due.
• The nature, size, frequency source and destination of anticipated transactions.
• The business justification for all uses of structures and entities

Ongoing Monitoring

Company Policy

It is the policy of this firm to monitor client’s instructions and transactions to ensure consistency with those anticipated and with the client risk profile. Instructions and transactions will be monitored to ensure that possible grounds to suspect money laundering or facilitation of tax evasion will be noticed and scrutinized and changes requiring a re assessment of risk will be acted upon.

Controls and Procedures

1. All staff will maintain alertness for clients instructions and transactions which represent a significant divergence from those anticipated for the client.
2. Where a clients instruction or transaction is not consistent with what is anticipated
3. An explanation will be sought by contacting the client

• The involvement of a high risk or unexpected jurisdiction or organisation will be checked with the firms MLRO for possible sanctions or alerts
• The possible introduction of or increase of tax evasion risk will be checked for.
• If a satisfactory explanation is found the client file will be updated to record that.
• If no satisfactory explanation is found the matter will be brough to the attention of the responsible director who will consider whether there are grounds to suspect money laundering.
• The responsible director will consider whether there is cause to carry out a re-assessment of the money laundering risk and if so carry this out.

4. The responsible director will supplement the training provided to members of staff involved.
5. Irrespective of whether specific incidents have caused a re assessment of money laundering or tax evasion risk every client file will be reviewed periodically to check information is correct and up to date and the level of CDD being applied is still appropriate. Six monthly for high risk clients and annually for all other clients.

Keeping records of client due diligence information

Company Policy

It is the policy of this firm to establish and maintain systems to keep records of enquiries made and information obtained while exercising client due diligence for AML purposes. The firm shall ensure that these records are retrievable as required for legal and regulatory stipulations. Records shall include but not be limited to details of verification of identity processes, beneficial ownership including discrepancy reporting the source of funds check supporting record for transactions and details recorded for accounting and business development purposes.

Controls and Procedures

1. When information is being collected for AML client due diligence, the responsible director will ensure that

• Photocopies or electronic copies of identity documents are kept or in exceptional cases with the approval of the MLRO the information is recorded about where the copies can be obtained.
• An electronic identification system captures and stores the information used to verify identity.
• Information collected is recorded in a consistent manner in the client file or other appropriate place and that CDD records held in different places are cross referenced where appropriate so that CDD information is accessible by and comprehensible to other authorises members of staff including the MLRO.
• All instances are recorded where information requested has not been forthcoming or explanations provided have not been satisfactory.

2. The firm shall have systems to routinely archive CDD records along with the firms accounting records to ensure their availability for a minimum of five years from the date of completion of the transaction or enquiry.
3. The firm shall have a data retrieval system which facilitates full and rapid retrieval including retrieval of electronic record of all relevant CDD records by authorised staff in order to respond fully to enquiries from financial investigators.
4. The firm shall have procedures to ensure that the acquisition of personal data in the course of CDD is restricted to that required for AML/CTF purposes and for the execution of the clients business.
5. The firm shall provide new clients with the following information prior to establishing a business relationship or entering into an occasional transaction.

• Information required under Article 13 of the UK GDPR including the identity of the data controller.
• A statement confirming that the acquisition of personal data in the course of CDD is restricted to that required for AML/CTF purposes and for the execution of the clients business.

6. The firm shall have procedure to delete relevant personal data at the end of the five year retention policy unless

• It is required for court proceedings.
• The data subject has given consent to the retention of that data.

7. For clients who have been the subject of a suspicion report relevant records will be retained separately from the firms routine archives and not destroyed even after the five year period has elapsed unless it is confirmed by the MLRO that they are no longer required as part of an enquiry.
8. The firm shall have procedures to ensure that data security measures are employed to protect AML due diligence information including archived information from unauthorised access.
9. In recording and documenting money laundering suspicion reports, the MLRO shall at all times protect the firms position with regard to UK GDPR compliance and the possible implications of a right of access request made under the legislation.

Internal Suspicion Reporting

Company Policy

It is the policy of this firm that every member of staff shall remain alert for the possibility of money laundering and shall report any and every suspicion for which they believe there are reasonable grounds following the firm’s procedure.

The expectation place on each individual member of staff in responding to possible suspicions shall be appropriate to their position in the firm. No one is expected to have a greater knowledge and understanding of clients affairs than is appropriate to their role.

Controls and procedures

1. Every member of staff must be alert for the possibility that the firms services could be used for money laundering purposes including tax evasion or that in the course of their work they could become aware of criminal or terrorist property.
2. Alertness to the possibility of money laundering, terrorist financing or tax evasion must be combined with an appropriate understanding of clients normal arrangements so that members of staff become aware of abnormal factors which may represent possible caused of suspicion.
3. A member of staff becoming aware of a possible suspicion shall gather relevant information that is routinely available to them and decide whether there are reasonable grounds to suspect money laundering. Any additional CDD information acquired in particular any explanations for unusual instructions or transactions should be recorded on the client file in the routine manner, but no mentioned of suspected money laundering is to be recorded in the client file.
4. The requirements to gather relevant information does not extend to undertaking research or investigation beyond using information sources readily available within the firm. Clients may be asked relevant information but only in the context of routine client contact relevant to the business in hand.
5. If after gathering and considering routinely available information, the member of staff is entirely satisfied that reasonable grounds for suspicion are not present no further action should be taken.
6. A member of staff who on consideration decides that there may be grounds for suspicion shall in normal circumstances raised the matter with the responsible director. If after discussion they both agree that there are no grounds for suspicion, not further action should be taken.
7. No member of staff is obliged to discuss a suspicion of money laundering with the responsible director. They may prefer to contact the MLRO directly without giving reason.
8. If following the raising of a possible suspicion by a member of staff, or resulting from their own observations the responsible director decides there are reasonable grounds to suspect money laundering he or she must submit a suspicion report to the MLRO, in the format supplied by the MLRO for that purpose.
9. An internal suspicion report does not breach client confidentiality or professional privilege and no member of staff shall fail to make an internal report on those grounds.
10. If a suspicion report results from a matter raised by a member of staff, the responsible director must advise them in writing that a report has been submitted by reference to the matter discussed on the given date, without including the name of the person suspected. This confirms to the member of staff who raised the mater that their legal obligation to report has been fulfilled.
11. In the circumstance where any member of staff forms a suspicion of money laundering but the responsible director does not agree that there are reasonable grounds for suspicion, the member of staff forming the suspicion must fulfil their legal obligation by submitting a money laundering suspicion report to the MLRO in the format specified by the MLRO for that purpose. The responsible director must recognise this legal requirement and assist the staff member in fulfilling it.
12. A member of staff who forms or is aware of s suspicion of money laundering shall not discuss it with any outside party or any other member of staff unless directly involved in the matter causing suspicion.
13. No member of staff shall at any time disclose a money laundering suspicion to the person suspected whether or nor a client or any outside party. If circumstances arise that may cause difficulties with client contact the member of staff must seek and follow the instructions of the MLRO.
14. No copies or records of money laundering suspicion reports are to be made except by the MLRO who will keep such records secure and separate from the forms client files or other repositories of information.

Formal disclosures to the authorities

Company Policy

It is the policy of this firm that the Money Laundering Reporting Officer shall receive and evaluate internal suspicion reports and decide whether a formal disclosure is to be made to the authorities If so deciding, the MLRO will make a formal disclosure on behalf of the firm using the appropriate mechanism.

It is the policy of this firm that where internal reports relate to planned or attempted fraud (where the funds involved are not yet the proceeds of crime) the MLRO shall decide whether a disclosure is to be made to the appropriate authority.

Controls and Procedures

1. On receipt of a money laundering suspicion report from a member of staff the MLRP shall acknowledge its receipt in wiring referring to the report by its date and unique file number, without including the name of the person suspected. This confirms to the member of staff that their legal obligation to report has been fulfilled.
2. The MLRO shall open and maintain a log of the progress of the report. This log shall be held securely and shall not form part of the client file.
3. Following receipt of a report the MLRO shall gather relevant information held within the firm and make appropriate enquiries of members of staff anywhere in the firm in order to properly evaluate the report. The MLRO shall then diced whether they personally believe there are reasonable grounds for suspicion and make a decision on the firms obligations to make a formal disclosure to the authorities.
4. All members of staff anywhere in the firm shall respond in full to all enquiries made by the MLRO for the purposes of evaluating a suspicion report. Information provided to the MLRO in respond to such enquiries does not breach client confidentiality/professional privileged and no member of staff shall withhold information on those grounds.
5. If deciding that a formal disclosure to the authorities is required the MLRO shall make a disclosure.
6. The MLRO shall document in the report log the reasons for deciding to make or not to make a formal disclosure.
7. The MLRO shall where appropriate inform the originator of the internal report whether or not a formal disclosure has been made.
8. The MLRO shall inform all those and only those members of staff who need to be aware of the suspicion in order to protect them and the firm from possible money laundering offences in connection with any related business.
9. Following a formal disclosure, the MLRO shall take such actions as required by the authorities in connection with the disclosure.

Stopping/continuing work following a suspicion report.

Company Policy

It is the policy of this firm that from the moment a suspicion of money laundering arises no further work will be carried out on the matter that gave rise to the suspicion. Neither commercial considerations nor the difficulty in responding to the clients’ enquiries on the matter shall be permitted to take precedence over the firms legal obligations in this regard.

In such circumstances the MLRO shall act with all possible speed to enable work to continue, or if appropriate to withdraw from the client relationship and assist staff in any communications with the client affected.

Controls and Procedures

1. As soon as a member of staff forms or becomes aware of a suspicion of money laundering no further work is to be done on the matter giving rise to a suspicion.
2. If there is any likelihood of the client becoming aware that work has stopped for example because the anticipated transaction has not gone through the member of staff must contact the MLRO for instructions on how to handle the matter with the client.
3. On receipt of a suspicion report the MLRO shall

• Instruct the originator of the report and any other staff involved to cease work on the matter giving rise to suspicion.
• Decide the shortest possible time whether all work for the client concerned should be stopped or whether other work that is not the cause of suspicion may continue and advise the relevant staff accordingly.
• Assist all affected staff in handling the matter with the client so that no tipping off offence is committed.

4. When work for a client has been stopped the MLRO shall carry out an evaluation of the suspicion report as soon as possible to decide whether a disclosure must be made to the authorities.
5. If the MLRO decides there are not reasonable grounds to suspect money laundering they will give consent for work to continue.
6. If the MLRO decides that a disclosure must be made they will request consent to continue from the NCA as quickly as possible.
7. On giving consent to continue either on their own authority or on receipt of notice granting a defence or implied consent from the NCA, the MLRO will confirm this in writing to the affected staff.
8. If consent is refused by the NCA, or delayed by an extension of the moratorium period the MLRO will take advice from the NCA and consult with the responsible director on the firms continuation of or withdrawal from the client relationship.

MAL/CTF Training

Company Policy

It is the policy of this firm that all staff who have client contact or access to information of the clients’ affairs shall receive anti money laundering training at an appropriate level according to their exposure of risk and ongoing training at least annually to maintain awareness and ensure that the firm’s legal obligations are met.

It is the policy of this firm that all staff who have client contact or access to personal data relating to clients shall receive training on data protection to ensure that their knowledge and understanding is at an appropriate level and ongoing training at least annually to maintain awareness to ensure that the firms legal obligations are met.

It is the policy of this firm that all staff exposed to the risk on the grounds of facilitation of tax evasion shall receive training on the prevention of tax evasion PFTE and ongoing training at least annually to maintain awareness and ensure that the firm is protected against the risk.

The MLRO shall in cooperation with the firms training officer, data protection officer and tax specialist ensure that training is provided for staff according to their exposure to ML/TF, data protection and tax evasion risk and the steps t=are taken to check and record that training has been undertaken and that staff have achieved an appropriate level of knowledge and understanding.

In the light of the seriousness of the obligations placed on each individual by AML legislation and possible penalties the MLRO shall ensure that information about these personal obligations is available to all members of staff at all times.

Controls and Procedures

1. The MLRO will in co-operation with the firs training officer evaluate alternative AML training methos products and services in order to provide appropriate training activities for all members of staff who have client contact or access to information about client’s affairs.
2. Appropriate training will take account of

• The need to achieve a level of knowledge and understanding appropriate to the individual’s role in the firm.
• The need to maintain that level through ongoing refresher training.
• The practicality of assigning different programmes to staff with different roles on a risk sensitive basis
• The cost and time effectiveness of alternative methods and media available.

3. The training programme will include means of confirming that each individual has achieved an appropriate level of knowledge and understanding whether through formal testing, assessment via structured discussion or other means.
4. Special consideration will be given to the training needs of senior management and of the compliance team.
5. The MLRO will

• Inform every member of staff of the training programme that they are required to undertake and a timetable for completion.
• Check that every member of staff has completed the training programme that they are required to undertake.
• Refer to the appropriate director any cases where members of staff fail to respond to reminders and have not completed their assigned training.
• Keep records of training completed including the results of tests or other evaluations demonstrating that each individual has achieved an appropriate level of competence,

6. On completion of a training cycle the MLRO will ensure continuity of ongoing training.
7. The MLRO will determine the training needs of this role and ensure that they obtain appropriate knowledge and understanding as required to fulfil the obligations of the appointment.

Monitoring and Management of Compliance

Company Policy

It is the policy of this firm to monitor and conduct an independent annual audit of our compliance without legal and regulatory obligations on the prevention of ML/TF and the facilitation of tax evasion.

The firm’s directors shall provide the necessary authority and resources for the ongoing implementation of a complaint regime for the prevention of ML/TF and the facilitation of tax evasion.

Controls and Procedures

1. The MLRO will monitor continuously all aspects of the firms AML/CTF policies controls and procedures including procedures to protect and control personal data. The MLRO will also monitor continuously prevention of facilitation of tax evasion (PFTE) policies controls and procedures together with changes and developments in the legal and regulatory environment in which the firm operates.
2. Any deficiencies in AML/CTF and PFTE compliance requiring urgent rectification will be dealt with immediately by the MLRO who will report such incidents to the relevant director when appropriate and request any support that may be needed.
3. The MLRO will enable the independent audit function by preparing relevant materials including materials on tax evasion facilitation gathered via monitoring processes throughout the year. Findings from the audit of the firms AML/CTF and PFTE compliance will be reported to the relevant director.
4. Where management action is indicated the responsible director will respond to the report with details of the appropriate action to be taken.

Review May 2020

Covid-19 has disrupted business activity for most businesses. The RICS has alerted regulated firms that they may face additional AML and corruption risks.

EVC are alert to the following risks in new or prospective customers

• Being asked to work with unusual customers on unfamiliar types of work.
• Resistance from potential customers to complying with due diligence checks.
• Transactions which do not have clear business rationale or motivation.

In person checks are not possible during the restrictions and therefore identity checks will be carried out via video link. As restrictions change this may be reviewed again. The video will be live, with the person holding their original documents up for review. EVC will strive to check certified documents, but this may also be difficult during lockdown. Copy documents should have been sent to EVC prior to making the video call. The individual on the call will be asked to say their full name, DOB and address.

EVC will maintain checks in this way during the restrictions.

Review July 2022

HMRC has sent email correspondence stating that businesses must apply enhanced customer due diligence in relation to high risk countries. A statutory instrument came into force on 11^th July 2022. The list of high risk countries can be checked by searching “The Money Laundering and Terrorist Financing (Amendment) (High Risk Countries) Regulations 2021, Schedule 3ZA”

EVC will check this list if the person is not from England or Wales.

Review September 2022

From 1^st September 2022 there are changes to the Money Laundering Regulations in relation to proliferation financing risks.

Date of this policy: March 2023

Approved by: Emma Catterall, Director

Review Date: March 2024