Like with many things, the world of AML Compliance is full of acronyms. It’s likely that MLRO is just one of the many you’ll come across.
MLRO, or Money Laundering Reporting Officer is a role that’s required within a business to comply with the Money Laundering Regulations 2007. Sometimes referred to as a “nominated officer”, they act as a point for anti-money laundering inquiries and the management of their systems.
Who should be a MLRO?
Although it’s not defined as part of the regulations who should be appointed as the MLRO for an organisation, it does require dedication, as well as honesty and integrity. This role should be internal to the business and not held by an external consultant.
When it comes to a recruitment process, it’s important to look for these types of traits in a candidate, as well as being committed to supporting them professionally too.
It’s also important that the MLRO has a sufficient level of seniority within the organisation, as well as being able to decide independently whether they should report suspicious activities or not (something which may affect customer relations).
What does a MLRO do?
Some responsibilities of the MRLO include:
- designing and implementing anti-money laundering policies and procedures
- ensuring staff are trained in preventing money laundering
- keeping records
- carrying out money laundering risk assessments
- be the point of contact for employees in the business to report suspicious activity
- reporting suspicious activity or transactions to the National Crime Agency (NCA)
It’s possible for the nominated person to delegate some of their responsibilities in larger organisations.
Is it a requirement?
As part of the Money Laundering Regulations, you must ensure your business has adequate internal controls and monitoring systems. These controls should include appointing an MLRO.
How to ensure the role of the MLRO is efficient
With things like AML Compliance and KYC Checks, ensuring your processes are smooth is an important step. Tools like ML Verify can help in a number of ways, such as:
- A clear and details event log
- Plan and record training sessions for staff
- Manage AML Policies and Procedures with ease
- Limited company tracking with notifications of changes to directorship and PSCs
- An easy to use customer portal for document requests and collection