1. Policy Statement
Keane International Legal Consultancy LLP ("KILC") is committed to preventing terrorism financing and complying with all applicable UK legislation and international standards. This policy sets out the firm's approach to identifying, preventing, and reporting suspected terrorism financing activity.
KILC maintains a zero-tolerance approach to terrorism financing. We recognise that terrorism financing may not always involve the proceeds of crime, and that even small amounts of money can be used to facilitate terrorist acts. All members, employees, contractors, and agents of the firm are required to be vigilant and to comply with this policy at all times.
2. Scope
This policy applies to all members, partners, employees, contractors, and agents of KILC. It covers all business relationships and transactions where there is a risk of terrorism financing.
The policy applies to all service areas provided by KILC, including but not limited to:
- Company formation and corporate advisory services
- Immigration and visa advisory services
- Real estate and investment advisory services
- Tax and compliance advisory services
- Any other regulated services provided by the firm
3. Legal and Regulatory Framework
KILC's counter-terrorism financing obligations are governed by the following key legislation and regulations:
- Terrorism Act 2000 (TACT): Creates offences relating to terrorist financing, including fundraising for terrorist purposes (s.15), use and possession of money or property for terrorist purposes (s.16), funding arrangements (s.17), and money laundering of terrorist property (s.18). Section 19 creates a duty to disclose to the police where a person believes or suspects that another person has committed a terrorist financing offence based on information that comes to their attention in the course of a trade, profession, or business.
- Anti-Terrorism, Crime and Security Act 2001: Provides further powers for the seizure and forfeiture of terrorist property and enables the freezing of assets at the beginning of an investigation.
- Counter-Terrorism Act 2008: Provides additional powers for investigating and preventing terrorism, including provisions relating to the financing of terrorism.
- Terrorism Act 2006: Creates further offences relating to the encouragement and preparation of terrorism, and extends the application of existing terrorist financing offences.
- Sanctions and Anti-Money Laundering Act 2018: Provides the UK's post-Brexit framework for implementing financial sanctions, including the freezing of terrorist assets.
- Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017): Sets out requirements for customer due diligence, record-keeping, policies and procedures, staff training, and reporting in relation to both money laundering and terrorist financing.
4. Key Roles and Responsibilities
The following key roles have been established to ensure effective counter-terrorism financing compliance:
- Money Laundering Reporting Officer (MLRO): Lisa Mao is the designated MLRO for KILC and is also responsible for counter-terrorism financing matters. The MLRO receives and assesses internal reports of suspected terrorism financing, makes external disclosures to the National Crime Agency (NCA) where appropriate, and acts as the primary point of contact with law enforcement and regulatory authorities on counter-terrorism financing matters.
- Senior Management: The senior management of KILC is responsible for ensuring adequate resources are allocated to counter-terrorism financing compliance, approving and maintaining this policy, and promoting a culture of vigilance and compliance throughout the firm.
- All Staff: Every member of staff is responsible for understanding and complying with this policy, completing counter-terrorism financing training as required, remaining vigilant for signs of terrorism financing, and reporting any suspicions to the MLRO immediately.
5. Risk Assessment
KILC conducts and maintains a terrorism financing risk assessment as part of its enterprise-wide risk assessment. The risk assessment considers:
- Client risk factors: Clients with connections to jurisdictions with higher terrorism risks, clients associated with organisations linked to terrorism, and clients whose activities may be susceptible to exploitation for terrorism financing purposes.
- Service risk factors: The types of services we provide and how they could potentially be exploited for terrorism financing, including company formation services that could be used to create front companies, and fund transfer services.
- Geographic risk factors: Jurisdictions subject to sanctions or identified as having higher terrorism financing risks by FATF, HM Treasury, or the Home Office.
- Transaction risk factors: Unusual transaction patterns, transactions inconsistent with the client's known business activities, and transactions involving higher-risk jurisdictions.
The terrorism financing risk assessment is reviewed at least annually and updated whenever there are material changes to the firm's risk profile or the external threat environment. The findings of the risk assessment inform our policies, procedures, controls, and the level of scrutiny applied to individual client relationships.
6. Due Diligence
KILC applies customer due diligence (CDD) measures to all clients in accordance with its AML Policy. In addition, the following measures are specifically relevant to counter-terrorism financing:
- Sanctions screening: All clients, beneficial owners, and relevant connected parties are screened against applicable sanctions lists at the point of onboarding and on an ongoing basis.
- PEP screening: All clients are screened to determine whether they are politically exposed persons, their family members, or known close associates.
- Adverse media checks: Searches for adverse media and negative news relating to clients and beneficial owners, including any associations with terrorism, terrorism financing, or sanctioned individuals or organisations.
- Source of funds: Establishing the source of funds for transactions, particularly where there are terrorism financing risk indicators present.
- Enhanced due diligence: Applying additional scrutiny where higher terrorism financing risks are identified, including obtaining more detailed information about the client's activities, background, and connections.
KILC will not establish or continue a business relationship where satisfactory due diligence cannot be completed, or where there are unresolved concerns about potential terrorism financing.
7. Sanctions Compliance
KILC is committed to strict compliance with all applicable sanctions regimes. Sanctions are legally binding measures imposed by the UK Government, the United Nations, or other international bodies to restrict activities of designated individuals, entities, and countries.
- All clients and beneficial owners are screened against HM Treasury's consolidated list of financial sanctions targets, the OFSI list, and UN sanctions lists.
- Screening is performed at the point of client onboarding, when there are material changes to a client's circumstances, and periodically throughout the business relationship.
- Any potential sanctions match is escalated immediately to the MLRO for assessment. Pending the outcome of the assessment, no further services will be provided to the client.
- Where a confirmed sanctions match is identified, KILC will freeze any relevant assets, cease providing services, and report the matter to OFSI as required by law.
- Staff are trained to recognise potential sanctions evasion techniques and to report any concerns to the MLRO.
8. Ongoing Monitoring
KILC conducts ongoing monitoring of its business relationships to detect potential terrorism financing activity. Ongoing monitoring includes:
- Scrutiny of transactions to ensure they are consistent with the firm's knowledge of the client, their business, and risk profile.
- Regular re-screening of clients against sanctions lists and adverse media sources.
- Monitoring for terrorism financing red flags, including unexplained or unusual transaction patterns, transactions inconsistent with the client's known business, connections to designated persons or entities, use of complex or opaque structures with no clear business rationale, and transactions involving higher-risk jurisdictions.
- Keeping CDD records up to date, particularly for higher-risk clients.
The level and frequency of monitoring is risk-based, with higher-risk relationships subject to more frequent and intensive scrutiny.
9. Reporting
All staff have a legal obligation under section 19 of the Terrorism Act 2000 to disclose to the police as soon as reasonably practicable any belief or suspicion that another person has committed a terrorism financing offence, where that belief or suspicion is based on information that comes to their attention in the course of a trade, profession, or business.
The reporting process is as follows:
- Internal reporting: Any member of staff who has a belief or suspicion of terrorism financing must report their concerns to the MLRO immediately using the firm's internal reporting form. Staff should not attempt to investigate the matter themselves.
- MLRO assessment: The MLRO will assess the internal report and determine whether an external disclosure to the NCA is required.
- External disclosure: Where the MLRO determines that a disclosure is required, they will submit a Suspicious Activity Report (SAR) to the NCA via the NCA's SAR Online system.
- Tipping off: Staff must not inform the client or any third party that a report has been made or is being considered. Tipping off is a criminal offence and may prejudice any investigation by law enforcement.
Failure to make a required disclosure under section 19 of the Terrorism Act 2000 is a criminal offence. All staff are therefore required to report any suspicions, however minor they may seem.
10. Training
KILC ensures that all relevant staff receive appropriate counter-terrorism financing training, including:
- Induction training: All new staff receive counter-terrorism financing training as part of their induction, covering the legal framework, the firm's policies and procedures, how to identify terrorism financing red flags, and how to make internal reports.
- Ongoing training: Regular refresher training is provided at least annually, and additional training is delivered when there are significant changes in the threat environment, legislation, or the firm's risk profile.
- Awareness: Staff are made aware of current terrorism financing threats, typologies, and trends through periodic briefings and updates from the MLRO.
Records of all training provided are maintained, including dates, content covered, and attendees.
11. Governance
This policy is owned by the MLRO and approved by the senior management of KILC. Governance arrangements include:
- Annual review: This policy is reviewed at least annually by the MLRO and senior management, and updated as necessary to reflect changes in legislation, regulation, the threat environment, or the firm's risk profile.
- Record-keeping: Comprehensive records are maintained of all due diligence activities, monitoring activities, internal and external reports, risk assessments, and training activities. Records are retained for a minimum of five years after the end of the business relationship or transaction, as required by the MLRs 2017.
- Internal audit: The effectiveness of the firm's counter-terrorism financing controls is subject to periodic internal review and independent assurance.
- Breach management: Any breach of this policy will be treated as a serious disciplinary matter and may result in dismissal and/or criminal prosecution.
12. Contact
For any questions regarding this policy, or to report suspected terrorism financing activity, please contact:
- MLRO: Lisa Mao
- Email: compliance@kilc.co.uk
- Post: Keane International Legal Consultancy LLP, 128 City Road, London EC1V 2NX
This policy should be read in conjunction with KILC's Anti-Money Laundering Policy and Privacy Policy.