Internal control rules to counter legalization

The organization’s internal control is activities aimed at identifying operations subject to mandatory supervision. These include, but are not limited to, transactions with cash and other property related to the laundering of illegally obtained income, as well as the financing of terrorism. To ensure effective supervision, internal control rules are developed. A sample of this document will be described in the article.

The main activities

The key task of internal control is to prevent the organization of operations related to the legalization of profits obtained illegally, as well as relating to the financing of terrorism. This activity involves a number of activities, the implementation of which solves the tasks. In particular, the following measures are envisaged:

1. Organization and implementation of internal control.
2. Mandatory supervision.
3. The establishment of prohibitions on informing clients and other entities about measures taken to combat the laundering of proceeds related to the financing of terrorism and obtained by criminal means. The exception is cases of persons being notified of the suspension of operations, refusals to execute orders to perform financial actions and conclude a deposit agreement (account), as well as the need to provide documentation on the grounds established in federal law.
4. Other measures provided for in regulatory enactments.

Requirements

For the most effective implementation of the developed measures, the management is obliged to ensure the implementation of the provisions that provide for internal control rules to combat the legalization of illegal income. In this case, the following requirements must be met:

1. All employees should participate in the process, regardless of the positions they hold.
2. Information obtained through surveillance is kept confidential.
3. Employees should be excluded from the money laundering process.
4. It is necessary to ensure confidentiality of information about local documents of the enterprise, designed to prevent illegal operations.
5. The authorized supervisory state body must promptly and fully provide information related to the implementation of internal control.
6. During the process, it is necessary to apply effective methods for assessing risks related to the laundering of income.

When amendments are made to the federal legislation or other industry regulations, the organization’s internal control rules are adjusted accordingly. This must be done within a month from the date of entry into force of the new provisions of the Federal Law.

Responsible persons

They are established by authorized employees who develop internal control rules. In order to legalize illegal income, a variety of operations can be carried out. In this regard, the entities responsible for the implementation of the requirements, as well as persons engaged in operations with money and other property, must meet certain requirements.

Qualification conditions

The internal control rules in order to counter the legalization of illegal profits establish the following requirements:

1. The presence of high school in the areas of training, specialties that belong to the enlarged group in the discipline of "Economics and Management" or "Jurisprudence".In the absence of education, at least 2 years of work experience are required in positions related to the fulfillment of obligations to combat the laundering of criminal proceeds and funds spent on terrorism financing.
2. Passing special training.

Important point

For business leaders, certain opportunities are provided. In particular, when the internal control rules are implemented, in order to prevent the laundering of illegal proceeds, a company may create or define a structural unit authorized to provide appropriate supervision. At the same time, the specifics of the enterprise structure, staffing, customer base and the level of risks associated with the operations to be performed should be taken into account. The internal control rules include a description of the supervision system in the company and its branches, as well as the procedure in accordance with which the units interact on issues related to the implementation of the requirements of the law.

Programs

Internal control rules describe the following systems:

1. Implement local supervision.
2. Identification of customers, their representatives or beneficiaries, beneficial owners.
3. The study of subjects upon admission to service and in the process of providing services under an agreement
4. Estimates of the degree of risk when clients perform transactions related to the laundering of proceeds that were obtained illegally or related to the financing of terrorist activities.
5. Identification of procedures subject to mandatory supervision, transactions with signs of connection with the legalization of criminal profits or funds spent bypassing legislation.
6. Documentary data capture.
7. Regulation of the procedure for actions in case of refusal to execute customer orders to complete operations.
8. Regulation of the rules for the suspension of processes in accordance with the Federal Law.
9. Regulation of freezing (blocking) of money and other property in accordance with regulatory requirements.
10. Education and training of employees in the field of counteracting the legalization of profits obtained in the process of violation of the law or aimed at financing terrorist activities.
11. Audits of supervision of transactions and operations.
12. Storage of data and materials obtained during the implementation of local control programs.

Document Functions

The internal control rules regulate the fundamentals of the enterprise’s activities in the field of preventing the laundering of proceeds that were obtained illegally, as well as those intended to finance terrorist events. The document formulates the duties and rights, as well as the procedure for the employees of the company to implement the requirements of regulatory acts. The internal control rules set the deadlines for the implementation of tasks assigned to employees. The document defines the persons responsible for the implementation of the provisions.

Conclusion

The legalization of income that was obtained illegally, as well as the financing of terrorism, is today one of the most pressing problems of the world community. In almost all states laws are adopted to curb such activities. Governments are developing state programs and sets of measures aimed at solving these problems. Meanwhile, in the prevention of the laundering of illicit funds and the financing of terrorism, all participants in civilian trafficking should be involved.

Particular responsibility lies with monetary institutions. It is in them that illegal transactions are often made. In this regard, the state pays special attention to the control of financial transactions.To implement legislative requirements, enterprises must have a local document establishing the rules of internal control, taking into account the specifics of each company. In structures whose work is connected with financial and property transactions, managers must approach the implementation of tasks with all responsibility. Employees associated with operations must have the appropriate level of qualification, education and work experience. Internal control is carried out with the constant interaction of organizational units.