What Is A Money Laundering Reporting Officer?
Under the UK’s Money Laundering Regulations 2007, all businesses within the regulated financial services sector are required to appoint a Money Laundering Reporting Officer (MLRO).
The MLRO – sometimes referred to as a ‘nominated officer’ – provides oversight for their firm’s anti-money laundering (AML) systems, and acts as a focal point for related inquiries. The role involves a significant amount of responsibility: MLROs must have access to their firm’s financial records in order to provide oversight and must make strategic decisions about activities relating to money-laundering and financial crime.
The duties of the MLRO may involve serious legal consequences which result in civil and criminal action. MLROs take on significant personal liability within their firm: if AML protections are found to have been insufficient, a firm’s MLRO may face steep fines and, in worst cases, prison sentences of up to 2 years.
MLRO is an extremely important position within a business, so it is vital that senior managers understand and think carefully about the role.