Disciplinary outcome: Mohamed Khan

1. He failed to ensure that Khan & Co complied with its Anti-Money laundering obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). In particular:

   
   a) He failed to ensure that the firm-wide risk assessment was reviewed and updated regularly and/or when there were material changes to the firm’s business, clients, services or delivery channels, contrary to Regulation 18 of the MLR2017.

   
   b) He failed to ensure that appropriate procedures were in place to review Persons with Significant Control information and identify and/or report discrepancies, contrary to Regulation 30A of the MLR2017.

   
   c) He failed to monitor and manage the firm’s compliance with the Money Laundering Regulations 2017 on an ongoing basis by conducting regular reviews of its AML policies, controls and procedures, contrary to Regulation 21(c) of the MLR2017.

   
   d) He failed to apply effective customer due diligence measures, including obtaining and/or retaining adequate client      identification and verification documentation, contrary to Regulation 28 of the MLR2017.

   
   e) He failed to ensure that client risk assessments were effective, sufficiently documented and properly reflected the   money laundering and terrorist financing risks associated with the firm’s clients, contrary to Regulation 28.

   
   f) He failed to conduct adequate ongoing monitoring of the firm’s business relationships, including keeping customer due diligence information up to date and scrutinising transactions where appropriate, contrary to Regulation 28

2. He failed to comply with AAT’s Clients’ Money Policy. In particular:

   a)  He withdrew fees from the clients’ money account without obtaining the client’s consent to deduct those fees and/or before 30 days had elapsed since delivery of the relevant invoice, contrary to Regulation 28 of AAT’s Clients’ Money Policy.

   b)  He held mixed monies in the clients’ money account and/or failed to keep clients’ money separate from office money, contrary to Regulations 15 and 24 of AAT’s Clients’ Money Policy.

   c) He failed to conduct an annual compliance review of the firm’s clients’ money controls, contrary to Regulation 33(b) of AAT’s Clients’ Money Policy.

By reason of the conduct set out in the Allegations above, Mohamed Khan is guilty of misconduct pursuant to Article 21 of AAT’s Articles of Association.

1. Severely Reprimanded for a period of three years
2. Fined £5,000
3. Removed from AAT fellow membership (FMAAT) status for a period of three years

The decision of the Investigations Team shall stand as an Order of the Association pursuant to Regulations 5.2 and 5.3 of the Disciplinary Regulations.