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?

No the OP isn't fine. That's shockingly bad advice.

It's an offence under UK law if you don't report a SUSPICION and you can be convicted for failing to report.

OP you need to make a suspicious activity report asap.

Just saw your post about the whole 'tipping off' point.

Hmmm, if you definitely can't speak with your senior then call your whistleblowing team for advice. You can do that anonymously.

It definitely isn’t a test. The colleague who originated the work didn’t do KYC and gave me the work to do. We are in the same team.

Report it asap

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.

It was just this week. And this morning when I realised that the KYC hadn’t been done I mentioned to a colleague ‘I hope AML don’t find out about this!’. I was joking. But now on reflection it isn’t a joke.

And I think this will cost me and the senior person our jobs.

MLRO here. Remember that making your Internal suspicious activity report (or whatever your company call it) is YOUR protection if it is determined later that there is ML.

You need to run the KYC, report the breach & raise a suspicious activity report - failure to do nothing could have serious consequences (financial & jail time) for your company, you and any senior colleagues.

Regardless of the amount. I’m sure I read in training that the London July 2005 attacks only cost £8k and that’s because so much went under the banks radars and no one raising a suspicion.

@AuditAngel What happens if it is ML? What comes next? How could anyone seriously investigate the crime.

The ‘loan’ is so flimsy (an A4 sheet) for $$$$$. The money has gone.

I did some Googling of the entities. And yeah, flimsy as.

Do you have a MLRO that you can report to? I know you have to be careful about tipping off, but I think you know that this has to be reported, once reported its out of your hands and not your responsibility. If the MLRO decides its not high risk, which it should be from the sounds of things, then that's on him.
As long as the customer is not told you should be fine

Senior Compliance Manager here. Pp above have already said all there is to say - you should know from your training that you have to report this and it will be far far worse if you don't and it all subsequently comes out at a later date. Talk to your MLRO, make your SAR or call your whistleblowing hotline - whatever your procedures say. Whatever happens in terms of team dynamics, it's clear there is a serious process failure here that needs to be addressed for the future (even if that failure predated your coming onto the deal).

Well this has been an interesting read.

The way you capitalised Blow Up made me suddenly think imagine if this is some kind of spy communication thread. Do spies communicate via mumsnet? Then all of a sudden we have pps discussing Terror attacks and I feel like I have dropped off into a parallel universe.

Blatantly know to much now and ending up in a suitcase now. Been nice knowing you all 🤣

The teammate I told said ‘oh shit’ - are they implicated?

Can I air it with the senior colleague and ask them why the KYC was not done and what the background is to the transaction?

@CaponeOnTax we completed a suspicious activity report in my place and it was sent to the NCA who confirmed the individuals were money launderers.... The amount was small, but that's how it starts. Report it ASAP, you need to, this could have severe financial repercussions and possible jail time if found out later. If its not money laundering then you highlighted anti-MLR checks are not being performed and more strict procedures need to be put in place

Report report report. Suspicious activity report and call into MLRO. Just explain the truth - you realised after the transaction completed and it’s been troubling you over the weekend. I wouldn’t fire you for making a mistake if you self reported it, but I would if you didn’t. It will get picked up by audit or reported by someone else.

I don’t understand how it can be USD and no interest?

Sorry this is troubling you on a Friday night. Such a high pressure environment.

How small was the amount? This is circa $60k. Basically buttons in my business world.

😅🤣😂 Made me giggle. I needed it! Thank you!

Do you work for Santander?! The whole training/process in your business sounds lax.

You have to report it, no two ways about it, better now than it be picked up in an audit and you find out then your firm/bank or whatever has been the "middle man" in money laundering

You had "forgotten" the law on tipping off? You need refresher training.

Obviously you report it. The "mundane" transaction could be a test to ensure everything works and get through compliance before they do something bigger.

Are you in the UK? High value is anything about €10,000 or more I think so you’re not dealing buttons as much as it seems that way!

I don’t understand how it can be USD and no interest

This is what makes me suspicious. It looks like a five week bridging loan, but there is no interest payable. And the Borrowers reside in Zero Enforcement Land. So very high risk, no security.

So you told a colleague. How bad will you look of they report and you don't, especially when they say you spotted it. Legally and practically you have to. You need to be selfish and protect yourself bu reporting.

That’s should be ‘high risk, no security and no consideration’.

I know it must seem like I am stupid to miss all of this, but the week has been a blur, with what felt like much more important things going on. Generally, I am quite clued up.

I agree with the majority - you need to report to your mrlo. Quickly. And without telling anyone else.

It’s hard, I know, but a bit part of why the world is constantly fucked is because people in the middle of the chain of corruption / fraud / other crime etc feel they are not important enough / going to get screwed / someone else will deal with it.

Report it