Search our news, events & opinions

28 November 2018 0 Comments
Posted in Education, Opinion

Private Schools facilitate illicit transactions?

Posted by , Paralegal

As part of stepping up the enforcement of anti-money laundering legislation the Agency has notified private schools that they should file more Suspicious Activity Reports (“SAR”), flagging suspicions over the payment of fees.

illicit education funding private school

The potential use of private schools as a way to launder funds was highlighted when Millfield school faced accusation that it had received payments connected to a £14bn money laundering operation in Moldova. Additionally, a former Nigerian state governor also used part of the £50m he fraudulently obtained to fund the £23,465 a year for each of his children to attend The Port Regis School. The UK’s attitude to monitoring financial activity is changing, already resulting in a 14% decline in Russian pupils since 2016.

The Proceeds of Crime Act 2002 (“POCA”) is the primary legislation applied to schools. It includes offences for concealing, acquiring and using criminal  proceeds and prejudicing an investigation. Commonly schools have relied on “adequate consideration” as a defence which covered tuition fees but not donations. However, there are four offences under s.329 and s.342 of POCA, of which adequate consideration is only a defence to one of them.

Schools are not required to nominate a Money Laundering and Proceeds of Crime officer (MLNO) to report suspicious activity, but they should monitor HM Treasury and EU notices on high-risk countries and submit reports where appropriate. Verifying ID, especially when dealing with politically exposed persons and customers from high-risk locations, can minimise the chances you will wash illicit money.

Most importantly, robust policies to monitor and report situations coupled with effective personnel training will increase awareness and reduce risk. Submitting an SAR can be done online in five steps and greatly supports investigations.

If you have any enquiries, please contact our Education team on:

0800 923 2073     Email usenquiries@roydswithyking.com

Leave a comment

Thank you for choosing to leave a comment. Please keep in mind that comments are moderated and please do not use a spammy keyword or a domain as your name or it will be deleted.

*required*

**required*

*optional*

Education

Stay ahead with solicitors for academic facilities.

Find out more

Paralegal

T: 01865 264 003 (DDI)
Email

Search our news, events & opinions