Chapter IV               

             4          Statements of Principle

The Notes adopt a new approach to the requirements that each firm must put in place in order to mitigate the risks that it is exposed to. 

The following principles outline these requirements and are explained in more detail in the following chapters.

SP1            The senior management of a firm is responsible for ensuring that the systems of control operated in the firm appropriately address the requirements of both the legislation and these guidance Notes.   

SP2            Firms must adopt a risk-based approach to these statements of principle and their requirements.   

SP3            All firms must know their customer to such an extent as is appropriate for the risk profile of that customer.

SP4            Effective measures must be in place that require firms to have both internal and external reporting requirements whenever money laundering or terrorist financing is known or suspected.

SP5            The firm will establish and maintain effective training regimes for all of its officers and employees.

SP6            Firms must be able to provide documentary evidence of their compliance with the legislation and these Notes.