As with many professional service providers involved in financial or transactional activity, Paton & Co Group LLP is required by law to carry out Know Your Client (KYC) and anti-money laundering (AML) checks.

These checks help ensure that our business complies with legal and regulatory obligations and assist authorities in preventing the misuse of legitimate services for money laundering, terrorism financing, or other criminal activity.

Our Legal Obligations

We are required to carry out identity and verification checks on all clients before providing certain services. These checks are carried out in accordance with UK legislation designed to prevent financial crime.

Typically, this involves confirming:

• Your identity

• Your address

• Where applicable, the source of funds or source of wealth

• In some cases, ownership or control of assets or companies

Identity verification may be conducted using secure electronic verification services.

We will only request information that is reasonably required to fulfil our legal and regulatory obligations.

Additional Checks

In certain circumstances, additional documentation may be required. For example:

• If a transaction involves significant financial value

• If assets are held through companies, trusts, or other legal structures

• If a client resides outside the United Kingdom

• Where regulations require us to verify the beneficial owner of a transaction

These procedures are standard across regulated industries and help ensure compliance with anti-money laundering regulations.

Relevant Legislation

Our KYC and AML procedures are carried out in accordance with relevant UK legislation, including:

• The Proceeds of Crime Act 2002

• The Criminal Finances Act 2017

• The Terrorism Act 2000 and 2006

• The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017

These laws require regulated businesses to verify the identity of their clients and maintain appropriate records of these checks.

Reporting Obligations

Where a regulated business suspects that a transaction may involve criminal activity or illicit funds, it may be required by law to submit a report to the National Crime Agency (NCA).

In such circumstances, businesses are legally prohibited from informing the individual concerned that a report has been made.

Use of Your Information

Any information you provide as part of our KYC process will:

• Be used solely to meet our legal and regulatory obligations

• Be handled in accordance with applicable data protection laws

• Be stored securely and treated in strict confidence

Your information will not be shared with third parties except where:

• required by law or regulation

• requested by a regulatory authority or law enforcement agency

• you have provided written consent for us to share it with another party involved in a transaction.

Further Information

Further information on UK anti-money laundering regulations can be found at:

https://www.gov.uk/topic/business-tax/money-laundering-regulations
https://www.gov.uk/government/consultations/money-laundering-regulations-2017