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?

@CaponeOnTax the MLRO is there for a reason, they are able to answer your questions. I bug the hell out of ours, especially as a lot of our clients are international. Every single person involved is responsible, not just the person at the beginning, middle or end, everyone. Come on, you must have had your training on this, you don't go asking questions, investigating matters yourself, you make the Report and let it go through the proper channels.

I understand you don't want to drop your colleagues in it, I get it.

You have been told and told and told again, report it, that is the only thing you should do!

OK, well then, the answer is no. You do not investigate further yourself - you pass it up the line.

OK, I am going to report it. Definitely not going to risk jail time for this:

I’d like to make a joint report with my colleague who I spoke to this morning (so I am not dumping them in it and they aren’t dumping me in it) - is that competent? We can’t be the first people to discuss something and conclude between us it looks dodgy?

(BTW, thanks everyone for your replies - I am very grateful for them all)

Never try and do a retrospective KYC - even if it si clean it will lok dodgy if your file ever comes up for audit. I'd go straight to the complaiance officer and say that you were bounced into the middle of the transaction and at the time assumed that your manager would have done the KYC etc. However, having reflected on it you are not so confident and think that it would be a good idea for them to take a look.

As a junior tax partner I had this so often that I lost my temper with our compliance partner in the end as I thought that he should have had better training in place. He was actually very sweet and agreed with me.

Please don’t do this.

you don’t need to catastrophize this any further

there is a report line, you acknowledge above you will report, please just do that and take a step back, refresh your training and find some confidence in you as you are going to do the right thing.

never known anyone being sacked for following the company policy.

Well done - it's definitely the right decision. Re joint report - technically it's not an issue if your colleague is definitely not complicit - you just need to avoid 'tipping off', so cannot discuss with anyone who might be complicit in the money laundering. However, in practice, you need to make sure your colleague doesn't delay or deter you or try to minimise the failings/come up with any kind of a 'story'. It might be simpler to make your own report for those reasons.

The chances of you doing jail time are close to my chances of becoming a supermodel and marrying Chris Pratt.

You sound rather innocent OP - come and join my bank, and we'll toughen you up (and give you proper AML training)!

They may have already reported it off the back of your conversation. Your responsibility is to you.

Glad you’ve seen sense to report it . If you have WFH access do it ASAP over weekend ( as in make it a priority over any home admin/kid’s clubs/shopping/visiting etc).

Op you need to go into self preservation mode and protect yourself- not others. Who cares if you blow up workplace drama if you may otherwise apparently get a conviction here? Choose your own life/career over theirs. Seek legal advice if necessary

You know what you need to do.
Even if it's a small amount it's doesn't negate the need to complete KYC.
Everyone involved in a transaction must ensure they are satisfied that checks have been done and procedure followed.
You clearly aren't so report it as a SARS.
Do not tell anyone with the exception of the MLRO and team if you need guidance.
You say you might get in trouble have you though it's a tester transaction for you to ensure you actually follow procedure.

Just make a report by yourself. You don't have a responsibility to your colleague.

No! Just report it.

MLRO here. As you have suspicion over this transaction (even without knowing exactly what you are suspicious of) you are legally obliged to file a suspicious transaction report and this will be your legal protection if your fears turn out to be correct.

Parallel to this I would also flag to senior management that you have questions over whether KYC processes were followed correctly and ask them if they think it should be looked at again to ensure files are complete.

Don’t hesitate - believe me you do not want to be asked by your MLRO or law enforcement why you did not report obvious red flags.

Also to add - do not file a joint report. You don’t know who of your colleagues could be in on this so you could risk inadvertently tipping off if you tell your colleague you are reporting.

This sounds like a bribe/kickback payment to me based on your description, report to MLRO and let them deal with it.

Definitely report. It’s a crime if you don’t.

This makes working in banking sound very interesting.

this is why firms ask you to do training on this stuff…. You knew you needed to report this (high risk countries involved, pressure to get the transaction done - ooh look, bunting’s worth of red flags!) but worried about the consequences you tried to justify it to yourself not to…But having concerns and not reporting them is so much worse! I would def approach it in the way @londonmummy1966 suggested.

Twenty years in risk & compliance over here - we are always nice to the ones who come forward and say “I need some help with this, this doesn’t seem right.”

It’s a strength not a weakness to report.

Another vote for no do not talk to the colleague. Put yourself FIRST. Follow the process to report this by yourself, today ideally.

No. You shouldn't have spoken to them in the first place. If anything suspicious has happened, you two will be in the firing line for discussing it and trying to cover your own backs.

For the love of god!!

I know NOTHING about the industry you work in. Absolutely NOTHING but after reading this thread even I know you have to report it to your MLRO!!

I don't even know what the fuck an MLRO is!!

I do know (from this thread) that you've had training, that's is an offence not to report and you could be jailed.

So why on Earth will you not be reporting it on Monday???

Oh I see you have FINALLY been persuaded to report on Monday. But you want to go with another colleague!

With all due respect OP I really think you should ask for more training.

Come on OP. File that report ASAP. Don't discuss with any colleagues, don't do any further checks, just report and move on. You're not going to lose your job and you're tying yourself up in knots unnecessarily.