Anti-Money Laundering (AML) Policy
The Mental Health Practice
Effective Date: 1 September 2024
1. Purpose of This Policy
The Mental Health Practice (hereinafter referred to as "the Firm") is committed to complying with all applicable laws and regulations to prevent money laundering and terrorist financing. This policy sets out the responsibilities of the Firm, its employees, and its clients in ensuring compliance with the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 and other relevant legislation.
In practice The Mental Health Practice never holds client money, our services are entirely funded by the Legal Aid Agency, and we always obtain a great deal of information about the background of clients, so the risk of money laundering activity is assessed as extremely low. We are not a business covered by the Money Laundering Regulations.
2. Definitions
Money Laundering: The process of disguising the origins of illegally obtained money to make it appear legitimate.
Vulnerable Clients: Clients who may be more susceptible to exploitation due to age, mental or physical disability, financial instability, or other personal circumstances.
Politically Exposed Persons (PEPs): Individuals who hold prominent public functions, including their immediate family members and close associates, and are at higher risk of involvement in money laundering.
3. Scope of the Policy
This policy applies to:
All employees, contractors, and partners of the Firm.
All clients engaging the Firm’s services.
4. Rights of Clients
4.1 Fair and Transparent Treatment
Clients have the right to:
Be treated fairly and respectfully throughout their engagement with the Firm.
Be informed about the AML requirements and why specific documentation is requested.
4.2 Protection of Confidentiality
All client information provided for AML purposes will be handled confidentially and only shared with relevant authorities as required by law.
4.3 Support for Vulnerable Clients
The Firm recognizes that vulnerable clients may require additional assistance during the AML process. Adjustments will be made, such as:
Providing clear explanations of requirements.
Offering extra support in gathering and submitting necessary documents.
5. Rights of Employees
5.1 Training and Support
Employees are entitled to:
Training on AML requirements, including how to identify and report suspicious activity.
Guidance from the Firm’s Money Laundering Reporting Officer (MLRO).
5.2 Protection from Retaliation
Employees reporting suspected money laundering in good faith are protected from retaliation under this policy.
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6. Responsibilities
6.1 All Employees
Conduct due diligence if necessary as outlined in this policy.
Remain vigilant for signs of suspicious activity.
Report any concerns to the MLRO promptly.
6.2 Money Laundering Reporting Officer (MLRO)
The MLRO is responsible for:
Ensuring compliance with AML laws and regulations.
Investigating and reporting suspicious activity to the National Crime Agency (NCA) through a Suspicious Activity Report (SAR).
Keeping up to date with changes in AML legislation and best practices.
Contact Details for the MLRO:
Tammy Groves
The Mental Health Practice
Oxford Point, 19 Oxford Road, Bournemouth BH8 8GS
07961 053639
7. Client Due Diligence (CDD)
7.1 Standard CDD Requirements
Where Customer Due Diligence is required, the Firm will verify the identity of clients by obtaining:
Individuals: Government-issued ID and proof of address.
Companies: Certificate of incorporation, details of directors and shareholders, and proof of the entity's business activities. We will never, in practice, have a company as a customer.
7.2 Enhanced Due Diligence (EDD)
EDD will be conducted when:
A client is identified as a PEP.
A transaction is high-risk, such as involving high-value cash or international funds from jurisdictions with weak AML controls. This will never happen.
7.3 Ongoing Monitoring
The Firm will monitor transactions and client relationships to detect and respond to unusual or suspicious activity.
8. Reporting Suspicious Activity
8.1 Identifying Suspicious Activity
Suspicious activity may include:
Unusual payment methods or large cash transactions.
Reluctance to provide requested identification or documentation.
Complex or unusually structured transactions without clear justification.
8.2 Reporting to the MLRO
Employees must report any suspicions to the MLRO immediately.
8.3 Reporting to Authorities
The MLRO will file a Suspicious Activity Report (SAR) with the NCA if a reasonable suspicion of money laundering exists.
9. Compliance and Record-Keeping
9.1 Record Retention
The Firm will retain records of:
Client identification and verification documents.
Transaction details and correspondence.
Reports and disclosures made to the MLRO.
These records will be kept for at least five years after the end of the business relationship or transaction.
9.2 Compliance Audits
The Firm will conduct periodic audits of its AML procedures to ensure compliance and effectiveness.
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10. Penalties for Non-Compliance
Non-compliance with AML laws can result in severe penalties, including:
Fines and imprisonment for employees or partners found guilty of money laundering.
Financial and reputational damage to the Firm.
The Firm will take disciplinary action against any employee who knowingly facilitates money laundering.
11. Updates to This Policy
This policy may be updated periodically to reflect changes in legal or regulatory requirements. The latest version will always be available on our website or upon request.
Signed:
Tammy Groves
The Mental Health Practice
1 September 2024