Banking & Finance analysis: Fraud, money laundering, hacking, cyber attacks and bribery are key parts of the modern tool kit for financial criminals. The volatility and uncertainty characteristic of economic crises, such as the current coronavirus (COVID-19) crisis, provide fertile ground for these crimes. On a recent PRIMEtime Virtual Event, Gay Huey Evans OBE, P.R.I.M.E. Finance expert, chair of the London Metal Exchange in December 2019 and an independent non-executive director of Standard Chartered plc (where she is chair of the Board Committee on Financial Crime and serves as a member of the Board Risk Committee), identified financial crime as a significant risk which is heightened by the current crisis.

Archived: This Practice Note has been archived and is no longer maintained. For information on the Financial Conduct Authority (FCA’s) powers to prosecute offences in financial services, see Practice Note: FCA prosecution of criminal offences—essentials. Market abuse and insider dealing are forms of financial crime involving misconduct in, or misuse of information relating to, a financial market. A civil/regulatory regime designed to detect, deter or prevent all forms of financial crime in the regulated sector exists under the Financial Services and Markets Act 2000 (FSMA 2000) and the onshored UK Market Abuse Regulation (which implements Retained Regulation (EU) No 596/2014 (OJ L 173/1) of the European Parliament and of the Council of 16 April 2014 on market abuse (EU Market Abuse Regulation) (which applies in the UK as of IP completion day)). This sits alongside the criminal offences of insider dealing and market abuse penalise the improper operation of the financial markets and activities which undermine the integrity of the UK’s financial system. The following resources provide practical guidance on the civil/regulatory

1 General information Date of review [Insert date] Person(s) conducting review [Insert name] 2 Data Criteria Over the last 12 months Number of orders, notices, warrants or other enforcement actions received [Insert number] 3 Review and findings Is your financial crime investigation process

1 Introduction 1.1 We have processes whereby staff must report any knowledge or suspicion of money laundering, terrorist financing, fraud, bribery, corruption, sanctions breaches, tax evasion, etc to [insert, eg the nominated officer] (see section 3 for more on these processes). They are then under an obligation in certain circumstances to report that knowledge or suspicion to the National Crime Agency (NCA) through a suspicious activity report (SAR) (or, dependent on the nature of the report, to another agency through appropriate channels). 1.2 The NCA allocates those SARs to trained financial crime investigation officers for further investigation. Intelligence from SARs may then be shared by NCA with other law enforcement or government agencies (LEAs), which may need further information. 1.3 Where additional information is required from us following a SAR, it will generally be obtained through enforcement action (usually a production order) by an LEA. 1.4 This document sets out our procedure for dealing internally with financial crime investigations and enforcement actions. It describes the people involved, the steps to be taken and the timescales we aim to meet. 2 Responsibility 2.1 Our [insert, eg nominated officer]

Employees must report money laundering and terrorist financing concerns to your nominated officer, who is then under an obligation under the Proceeds of Crime Act 2002 (POCA 2002) and Terrorism Act 2000 (TA 2000) to report any knowledge or suspicion of money laundering or terrorist financing to the National Crime Agency (NCA) through a suspicious activity report (SAR). The NCA allocates those SARs to trained financial investigation officers for further investigation. Intelligence from SARs may then be disseminated by the NCA to other law enforcement or government agencies, which may need further information. Where additional information is required following a SAR, it may be obtained through enforcement action (usually a production order) under POCA 2002. While you must comply with any court order, you are also required to keep your client's information confidential; see Practice Note: SARs and confidentiality. This Practice Note is intended for law firms. It explains the various enforcement actions you may come across during a financial crime investigation, including production orders and search and seizure warrants. It expands on the Law Society’s

To be completed by the agent/intermediary. Please complete, sign and return to [insert name]. 1 General Required information Response Company or individual name [Insert company/individual name] Address [Insert address] Principal country of business [Insert country] Other countries of business [Insert country] Individual or corporate entity? ☐ Individual—please go to section 3☐ Corporate entity Primary Contact(name, title and contact details) [Insert primary contact] 2 Ownership and management For corporate entities only. 2.1 Owners of interests greater than [5%] Name Percentage ownership (%) [Insert name] [Insert percentage] [Insert name] [Insert percentage] [Insert name] [Insert percentage] [Insert name] [Insert percentage] 2.2 Directors/officers/partners Name Title [Insert name] [Insert title] [Insert name] [Insert title] [Insert name] [Insert title] [Insert name] [Insert title] 2.3 During the last [insert, eg five years] have any of your owners, directors, partners etc been government employees or officials, officials of a political party, candidates for public office or officials of a public international organisation (collectively ‘government officials’)? ☐ Yes—attach a separate sheet identifying names, dates, titles and details ☐ No 2.4 To your knowledge, during the last [insert, eg five years] have any of your owners, directors, partners etc been closely connected (ie having family, personal or business ties) to a government official? ☐ Yes—provide details on a separate sheet ☐ No 2.5 To your knowledge, during the last [insert, eg five years] have any of your

This survey is designed to measure knowledge and understanding of our [insert, eg fraud risk management or financial crime compliance] policies and procedures as a means to assess the effectiveness of our controls in this area. Please answer truthfully, as we [will OR may] use the results of this survey to inform a review of our policies and training arrangements. Please tick your answer and provide explanations where appropriate. After you have completed this survey, return it to [insert name]. If you came across a suspected instance of [insert, eg fraud or financial crime],

1 General Why do we need to engage an agent or intermediary? [Insert details] Name of agent/intermediary [Insert name] Principal contact at agent/intermediary Name: [insert name]Title: [insert title]Contact details: [insert contact details] Principal address of agent/intermediaryIf this is not in the UK, you must complete the Overseas agent/intermediary due diligence form instead [Insert address] Have we worked with this agent/intermediary before? ☐ Yes—provide details, including in what capacity and dates☐ No Is the agent/intermediary personally connected to, or otherwise able to influence the decisions of, any of our customers? ☐ Yes—provide details☐ No Has the agent/intermediary refused or failed to provide any information we have reasonably requested? ☐ Yes—provide details☐ No Individual or corporate entity? ☐ Individual—go to section 3☐ Corporate—go to section 2 2 Ownership and management of agent/intermediary For corporate entities only. Full legal name of agent/intermediary [Insert name] Operational addressIf different from address in section 1 [Insert address, if applicable] Owners of interests greater than [insert, eg 5%]Name and percentage ownership [Insert details] Directors/officers/partnersName and title [Insert details] General contact details Main telephone number: [insert number]Main email address: [insert details]Website address: [insert details] During the last [five years] have any of the owners, directors, partners etc of the agent/intermediary been:—government employees or officials;—officials of a political

We run our business[es] with integrity. All of us must work together to ensure our business[es] [remains OR remain] untainted by financial crime. The following table contains factors we consider to raise a higher probability of improper conduct by an agent or intermediary. Non-fatal red flags may be resolved with additional due diligence. Fatal red flags are so serious and pose so high a risk that they cannot be resolved and lead to immediate discontinuing of existing business relationships or the engagement process. See further our [Agents and intermediaries policy and Due diligence flowchart]. FATAL red flags NON-FATAL red flags Any previous convictions for financial crime offences, eg bribery, tax evasion facilitation, or fraud.The agent/intermediary has previously requested another organisation to prepare false invoices or other types of false documentation.The agent/intermediary refuses to agree

We run our business[es] with integrity. All of us must work together to ensure our business[es] remain[s]. untainted by financial crime, including bribery and corruption, tax evasion facilitation and fraud. This FAQ document, which is integral to that effort, guides us on how we can best achieve our business goals in a way that is consistent with this commitment. 1 Who are agents and intermediaries? Agents and intermediaries are third parties engaged to provide services for or on behalf of [insert organisation’s name] or represent our interests. They may include: —business consultants; —sales agents; —third parties retained in relation to government business or actions; —introducers, facilitators or other third parties who may provide services for or on behalf of [insert organisation’s name] in any capacity. [insert, eg Our Agents and intermediaries policy] further describes and provides examples of agents and intermediaries. 2 How can an agent/intermediary put [insert organisation name] at risk? Agents and intermediaries are ‘associated persons’ within the meaning of the Bribery Act 2010 (BA 2010), the Criminal Finances Act 2017 (CFA 2017) in relation to tax evasion facilitation, and the Economic Crime

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1 Introduction 1.1 We run our business[es] with integrity. All of us must work together to ensure our business[es] [remains OR remain] untainted by financial crime, including bribery, corruption, facilitation of tax evasion, fraud, and related offences. This policy is integral to that effort and we are all bound by it. This policy covers the use of agents, intermediaries, and other associated persons who provide services for [insert organisation’s name] or on our behalf. It sets out the due diligence steps required before and during the engagement of an agent, etc to ensure their use does not improperly affect our business. 1.2 This policy sits alongside and should be read in conjunction with our related financial crime prevention policies, eg our: 1.2.1 Anti-bribery and corruption policy; 1.2.2 Tax evasion facilitation prevention policy; 1.2.3 Fraud risk management policy[; OR .] 1.2.4 [[insert other.]] 1.3 What is an agent, intermediary or associated person? 1.3.1 The question as to whether a person is performing services for or on behalf of an organisation is to be determined by reference to all the relevant circumstances and not merely by reference to the nature of the