DIA Annual AML/CFT Questions (7.2 --> 7.6)
This article will guide you through the
Table of Contents:
7.2 Do you act as, or arrange for a person to act as, a nominee director or nominee shareholder or trustee in relation to legal persons or legal arrangements?
If you answered “yes”, estimate:
• the number of nominee directorship roles your reporting entity holds.
• the number of nominee shareholder roles your reporting entity holds.
• the number of trustee roles your reporting entity holds.
In Connectworks, your firm's Clients tab contains several reports which can help to calculate the number of these roles:
Identify trustee roles:
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Navigate to your firm's Clients>Trusts tab.
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Select the "I would like to..." and download the Trustee report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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In column N "Trusteeship end date" filter to select the tick box for "Present" only (this will provide a list of active trusteeships).
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In column B "Name" filter to select the names of all your trustee companies.
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After applying the necessary filtering for the entity type, highlight all names that appear in Column B and in the bottom right corner of Excel it will display the count number of the selected cells.
Identify nominee directorship roles:
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Navigate to your firm's Clients>Companies tab.
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Select the "I would like to..." and download the People & Employees report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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In column R "Directorship end date" filter to select the tick box for "Present" only (this will provide a list of active directorships).
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In column C "Name" filter to select the names of all your nominee directors.
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After applying the necessary filtering for the entity type, highlight all names that appear in Column C and in the bottom right corner of Excel it will display the count number of the selected cells.
NB. As Connectworks does not record a nominee directorship as a specific role, you will need to check your list to ensure other types of directorship are not included in this count.
Identify nominee shareholder roles:
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Navigate to your firm's Clients>Companies tab.
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Select the "I would like to..." and download the People & Employees report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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In column T "Shareholder" filter to select the tick box for "Current" only (this will provide a list of current shareholders).
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In column C "Name" filter to select the names of all your nominee shareholders.
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After applying the necessary filtering for the entity type, highlight all names that appear in Column C and in the bottom right corner of Excel it will display the count number of the selected cells.
NB. As Connectworks does not record a nominee shareholder as a specific role, you will need to check your list to ensure other types of shareholders are not included in this count.
7.3 Do you provide a registered office or a business address, a correspondence address, or an administrative address for a company, or a partnership, or any other legal person or arrangement?*
If you answered “yes”, estimate the number of companies, partnerships, or other legal persons or arrangements that your reporting entity provides these services to. Select the estimated number.
• Companies: 0; 1–10; 11–100; 101–999; 1000+
• Trusts (excluding charitable trusts): 0; 1–10; 11–100; 101–999; 1000+
• Partnerships (including limited partnerships): 0; 1–10; 11–100; 101–999; 1000+
• Charities (including charitable trusts and other charitable entities): 0; 1–10; 11–100; 101–999; 1000+
*Unless the office or address is provided solely as an ancillary service to the provision of other services.
In Connectworks the volume of entities can be calculated precisely using the CDD Report.
There is a question in the CDD workflow that specifically addresses this scenario, which can be used as a filter.
However, if CDD has not been completed for all your clients then you can also filter a list of these clients using the address filter instead. Both of these options are outlined below.
If the AML Workflow/CDD has been completed for all clients:
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In the Work>AML tab select the "I would like to..." button and generate the CDD Report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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Scroll across to Column Z - the header is "Providing a registered office or business address (other than as solely ancillary to a non-captured service)"
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Select the filter drop-down and select the tick box for "Yes" only.
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In Column G "Client type" select the filter drop-down and then select the tick box for the type of entity from Company, Trust, Individual, Partnership or Other.
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After applying the necessary filtering for the entity type, highlight all names that appear in Column A and in the bottom right corner of Excel it will display the count number of the selected cells.
If the AML Workflow/CDD has NOT been completed for all clients:
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In the Work>AML tab select the "I would like to..." button and generate the CDD Report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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Scroll across to Column K - the header is "Street 1" - this is the first line of the entity's registered address and will appear even if CDD has not been completed for the client.
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Select the filter drop-down and select the tick box for all instances of your firm's address. You may need to select multiple variations.
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In Column G "Client type" select the filter drop-down and then select the tick box for the type of entity from Company, Trust, Individual, Partnership or Other.
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After applying the necessary filtering for the entity type, highlight all names that appear in Column A and in the bottom right corner of Excel it will display the count number of the selected cells.
7.4 Do you manage client funds (other than sums paid as fees for professional services), accounts, securities, or other assets?
If you answered “yes”, estimate the value of funds managed in the last year. Select the estimated value.
0; $1–999,999;
$1,000,000– $9,999,999;
$10,000,000– $49,999,999;
$50,000,000 and over
In Connectworks, you can easily identify if such services have been provided by your firm.
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In the Work>AML tab select the "I would like to..." button and generate the CDD Report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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In column AA "Managing client funds (other than sums paid as fees for professional services), accounts, securities, or other assets" apply a "Yes" filter.
If any results appear then the answer to this question will be yes.
The clients showing under this filtering should then be further investigated to obtain the financial information relating to the second part of this question.
7.5 Do you provide real estate agency work (within the meaning of section 4(1) of the Real Estate Agents Act 2008) to effect a transaction (within the meaning of section 4(1) of that Act)?
In Connectworks, you can easily identify if such services have been provided by your firm
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In the Work>AML tab select the "I would like to..." button and generate the CDD Report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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In column AB "Providing real estate agency work to effect a transaction" apply a "Yes" filter. If any results appear then the answer to this question will be yes.
7.6 Specify which of the following services you engage in or give instructions on behalf of a customer to another person for:
a. any conveyancing (within the meaning of section 6 of the Lawyers and Conveyancers Act 2006) to effect a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008, and as specified in paragraph (a)(vi)(A) of the definition of “designated non-financial business or profession” in section 5(1) of the Act);
b. a transaction within the meaning of section 4(1) of the Real Estate Agents Act 2008;
c. the transfer of a beneficial interest in land or other real property;
d. a transaction on behalf of any person in relation to the buying, transferring, or selling of a business or legal person (for example, a company) or any other legal arrangement;
e. a transaction on behalf of a customer in relation to creating, operating, and managing a legal person (for example, a company) or any other legal arrangement.
In Connectworks, this information is gathered as part of the AML/CDD Workflow. If the AML Workflow has been completed for all Clients then the CDD report can be generated to check which clients your firm has conducted these services for.
To review these details:
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In the Work>AML tab select the "I would like to..." button and generate the CDD Report. Open the report in Excel.
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Turn on filtering for the headers in Row 1.
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The answers to this question are split across multiple columns with the following headers:
Column AC: Engaging in or giving instructions on behalf of a customer to another person for any conveyancing to effect the sale, the purchase, or any other disposal or acquisition of a freehold estate or interest in land.
Column AD: Engaging in or giving instructions on behalf of a customer to another person for any conveyancing to effect the grant, sale, or purchase or any other disposal or acquisition of a leasehold estate or interest in land (other than a tenancy).
Column AE: Engaging in or giving instructions on behalf of a customer to another person for any conveyancing to effect the grant, sale, or purchase or any other disposal or acquisition of a licence that is registrable under the Land Transfer Act 1952.
Column AF: Engaging in or giving instructions on behalf of a customer to another person for any conveyancing to effect the grant, sale, or purchase or any other disposal or acquisition of an occupation right agreement within the meaning of section 5 of the Retirement Villages Act 2003.
Column AG: Engaging in or giving instructions on behalf of a customer to another person for a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008).
Column AH: Engaging in or giving instructions on behalf of a customer to another person for the transfer of a beneficial interest in land or other real property.
Column AI: Engaging in or giving instructions on behalf of a customer to another person for a transaction on behalf of any person in relation to the buying, transferring, or selling of a business or legal person and any other legal arrangement.
Column AJ: Engaging in or giving instructions on behalf of a customer to another person for a transaction on behalf of a customer in relation to creating, operating, and managing a legal person and any other legal arrangement. -
If any results appear when filtering for "Yes" in each of these columns, then the answer to this question will be yes.
The clients showing under each of these filters should then be further investigated to obtain the financial information relating to the second part of this question.