to think I might be an accessory to a white collar crime?

[CaponeOnTax]

I work in a heavily regulated profession. This has been an insanely busy week so I am only reflecting on this now, even though it all seems obvious in retrospect.

I arrived on a financial transaction mid-way through and didn’t ask about the KYC/anti-money laundering checks on all the parties (which would usually happen right at the start) but early enough.

The key document looks dodgy (USD loan, no interest) and the parties are from high-risk corruption countries. It might be legit, it might not. But I now think it could be money laundering.

I’ve finished my short involvement. I have a broad KYC obligation. So do others on the transaction and they haven’t done anything except progress the transaction.

If I say something now I could be in serious career trouble for not doing anything earlier, when in fact there may be no crime anyway.

AIBU to stay quiet and hope it goes away?

That runs the risk of looking like you're trying to cover something up or avoid reporting it.

Including the fact that it looks like the KYCs wasn't done in your report would be better, I think

This/whatever the underlying reporting mechanism is if not direct to them.

You only have to report at the point you suspect money laundering. You now suspect it so are obligated to report.

Failing to report risks two years imprisonment and a fine. Tbh the MLRO is not going to ask why you took a day to report it. They'll be more interested in why kyc checks weren't done at the outset and whether they need to report it.

Don't. It will not look good (I spent 15 years investigating fraud and money laundering). Just report to the MLRO and let them deal with it. If the transaction is legit, no big deal. If it's not, you've saved yourself an awful lot of bother.

They do come out in the wash OP. We have our files spot checked by compliance, it would be raised then. Generally, compliance are much more understanding with ‘self reported’ issues than those that get picked up during spot checks. How long ago was this? If it was just this week, if you go in on a Monday and say you’d been thinking about this transaction over the weekend and are worried some steps might have been missed and you’d like to flag it, that will be much better received than keeping quiet and hoping it slips through unnoticed. Remember, quite often these people start with small transactions first to rest the water and see how robust your systems are. If they get a small one through, they may well try again with a bigger transaction. And of course, you have a moral obligation here as well.

I'm an MLRO. I recommend you report without delay.

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(I work in a building society). I expect you have regular trainings about this too.

OP, I work in Compliance and you need to raise it with your MLRO. Tipping-off doesn't apply to the MLRO. or your line manager. You don't need to be able to prove anything, but you must report any suspicion.

Sounds like there might be a flaw in the process, and you might help to remedy that. Human nature has us believing 'well no-one else said anything so it must be OK', but if everyone in a process thinks that way then things can slip through the net.

The OP doesn't necessarily work in a bank. I can think of several other professions which might be relevant.

OP, from your post, it suggests that someone else has done KYC, you've assumed it's all fine, but when reviewing the KYC file yourself, you don't think it's been done correctly, or some of the evidence might have been forged?

Don't try to redo KYC yourself. It will look odd, and could potentially raise suspicion. Instead, go speak to your MLRO for advice (don't go to your manager, go to the MLRO).

You can say that you thought everything was fine, but something niggled at you, you reflected on the facts over the weekend, and only then did you feel like you had a reasonable suspicion.

Ignoring this for a year and hoping the file doesn't get picked up for review and then talking to your MLRO is an offence. Talking to your MLRO on Monday is a defence. It's the smart thing to do.

If the manager hasn't been involved in this piece of work, the OP shouldn't discuss it with them. Nor is the OP protected by talking to their line manager - they need to raise it directly with the MLRO (or the MLRO's designated deputy if the MLRO is not around).

For all you know, the manager has been facilitating a dodgy client. MLRO every time!

Hi; you should definitely report to your MLRO now that you have suspicions. They will investigate and deal with it. Failings by others are not your problem

True - I'm making an assumption about OP working in my bank in my area of Compliance, so I guess it depends on context, but yes, if in doubt MLRO is the way to go.

My understanding of the AML is that you should report to your designated officer as soon as you become suspicious. Which is now, not at the time of the transaction.

Your company should be asking themselves why you were brought in mid transaction, did you have adequate information etc.

Ultimately you need to report it now. It’s been a couple of days not a couple of weeks and a lot of people would find it reasonable that after a busy week with a heavy workload, it is is only upon reflection that you’ve thought about it in depth.

But, your workload should not be so hectic that these things are missed.

Your company should be asking themselves why you were brought in mid transaction, did you have adequate information etc.

I was brought in at this stage because I don’t have direct contact with the client.

Yes report it. If an audit is done, they will get a list of all the users who accessed the file and your name will be on it too. Someone is going to have to answer some questions about how additional info was not requested/received. Do your part now and bring it to the MLRO's attention now.
Do you have access to your compliance procedures at home? Write it down over the weekend if you do as these forms are tedious to complete and you sound like you are short of time during the working day already.

Also, much as I can understand it’s a daunting prospect to report it now, I can guarantee it’s nowhere near as scary as getting a call in 6 months time, saying compliance are investigating one of your transactions and they would like to speak with you. It will be infinitely worse. My compliance team are fantastic, approachable people who are always super helpful and happy to speak. Whenever I’ve had concerns or worried I’ve made a mistake (and it happens to us all), they know what to do and how to minimise any impact. They are a wealth of knowledge and are the experts in minimising any impact.

But, your workload should not be so hectic that these things are missed.

Ah, so, the problem is it was team dynamics - I am actually dealing with a lot of team drama, part of the reason communication has been so poor. Reporting this will Blow Up the whole thing.

Report it. If you think somethings suspicious and don’t report then you could be in trouble for not doing so. If that makes sense.

the “you should have known” argument.

Call it in. You didn't do anything wrong but on reflection you're asking for more assurance and that's fine.

What's worse? Being party to what could ve discovered as money laundering or saying you have concerns before money switches hands?

I used to work in banking compliance, but regardless of the line of work, the remit is the same. If it seems suspicious, report it.
If all is well and things are held up sightly, that's an inconvenience. If all isn't well, the sooner action is taken the better.
As for people more senior, if they have done what they should have done, according to procedure, that should cover most bases. However, not being aware of potential money laundering is not an excuse.

I work in professional services and have regular trainings on this sort of thing. As a PP said, you have a duty to report as soon as you have a reasonable suspicion of fraud or money laundering. The easiest thing to do would be to go straight to the MLRO and then it becomes their problem rather than yours!

You must report this to your MLRO now. Don't delay. It will look worse the longer you leave it. If you report it asap you can at least say that as soon as you had suspicions you raised them.

Any sniff of you covering up or delaying will make things worse for you.

I think you should report it, otherwise you might find yourself in the firing line.
Also, just a thought, do think it could be a deliberate test of your skills/integrity?

I guarantee you’re not the only one who spotted the red flags if they’re that obvious.

I’d speak up now. “Something has been bothering me. I should have mentioned it before, but I’m mentioning it now…”

Absolutely say something.

Perhaps speak with your senior first - that way you can get a second pair of eyes to double check and then decide what's best.

I have these same responsibilities at work and as awkward it is to report your findings after the fact it will show that you are honest.

We're all human and these things happen!