RFAs confused about AML rules
The PAA has asked the Financial Markets Authority for guidance on a number of issues relating to AML, including how closely RFAs have to assess the risk of money laundering at their businesses.
PAA professional development manager Jenny Campbell said authorised financial advisers were classed as “reporting entities” under the legislation and had quite clear obligations including having an AML programme and doing a risk assessment of their business.
But she said the rules weren’t so clear for RFAs, who aren’t reporting entities but may still have to perform AML-related tasks, including performing customer due diligence on someone applying for a mortgage.
“AFAs have to do a risk profile; it’s very clearly legislated, but to what extent do RFAs have to look at their businesses?” she said. “Also there’s the whole customer due diligence thing: where does the final responsibility lie, with the adviser or with the lender?”
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