Agenda item

The Committee received a report seeking approval prior to its implementation, on the Council’s revised policy on Anti-Money Laundering. It was reported that new regulations came into force on 26 June, 2017 and whilst they do not place specific responsibilities on the Council/local authorities in respect of money laundering, it is accepted best practice for the Council, as a guardian of public finances, to comply with the spirit of the legislation and put in place appropriate anti-money laundering safeguards.

It was reported that the Policy, which was attached at Appendix A to the report, takes a risk based view of the activities of the Council and aimed to put in place procedures to prevent and detect (and ultimately report on) money laundering activities without being onerous or excessive to the Council’s overall risk. It was further noted that the Council’s overall risk in respect of money laundering had been judged as low.

Members were advised that the Money Laundering Regulations (2017) require the completion of a documented risk assessment for money laundering activity and the implementation of appropriate procedures to prevent, detect and report on money laundering activity. It was noted that the regulations also require the appointment of a Money Laundering Reporting Officer and  the role had been reassigned to the Chief Financial Officer.

Members were given the opportunity to make comments and ask questions as follows:-

Councillor Iris Beech asked whether the team were aware of any substantial money laundering cases and whether the procedures were working as they should be. Peter Jackson stated that cases were very few and far between and there hadn’t been any transactions that had caused any concern, so assured members that arrangements were working effectively.

In relation to the fact sheet at page 31 of the report, Councillor Mark Houlbrook asked whether point 5 should fall within the Whistleblowing procedure. In response, it was advised that a change in the regulations had been made and any suspected money laundering would be reported to the National Crime Agency who require a specific form to be completed outside of the Whistleblowing Policy. Councillor Houlbrook asked what protection was in place for employees reporting suspicions. It was advised that Legal were required to inform the National Crime Agency, however this would be processed in a strictly controlled way and safeguards within the policy state that information should not be kept within that persons record.

Kathryn Smart asked whether there were any examples to look back on to ensure that risks were not taken on any potential future cases. It was reported that there were very few examples as the ability to make cash transactions had been limited, There were a few exemptions i.e Right to Buy, where larger sums of money were being processed, however, there were procedures and due diligence for these issues. It is was further advised that no cases had been referred to the National Crime Agency. Peter Jackson wished to advise Committee that there was currently an e-learning training package which was due to be tested shortly and whilst it was envisaged that this would not be a mandatory module, it was noted that there would be an additional mandate for all relevant Heads of Service to complete the training. It was noted that the training would be on-line by the end of September.

Councillor David Nevett commented on the cash transactions limit of £10,000 for when checks were made and asked whether this was prescriptive or could this be lowered. He also sought clarification with regard to cheque transactions and whether these were dealt with in the same way. In response, it was stated that in terms of cheque transfers, a cheque would be supplied through a bank, so appropriate checks would have been carried out by the bank prior to receipt by the Council. It was stated that the amount was set by the Council at £10,000  in order to fall under the level set by the Act of   €15,000 (currently around £11,000).

The Vice-Chair, Councillor R.A. Jones, asked whether the team had any areas of concern in relation to services dealing with cash transactions and whether these could be reformed. In response, it was reported that any areas of concerns would already be flagged up within the regular audit plan. Members were advised that in the case of Right to Buy’s a review of the service was currently being undertaken. It was also advised that it should be noted that the Council no longer have cash offices in operation albeit there is a cash machine within the Civic Office reception.

In reference to penalties, Councillor Mark Houlbrook stated that if there had been found to be a breach, would the policy not recommend immediate referral to the Police for not reporting the crime and asked what the sanctions for a member of staff would be. In response, it was reported that this would be very difficult to detect. However, if detected then the National Crime Agency and the Police would deal with the matter and the Council would deem the matter to be a gross disciplinary offence.

RESOLVED that the Council’s revised Anti-Money Laundering Policy and associated arrangements be approved and the change of the Money Laundering Officer be noted.