Which of the following is a requirement of firms under the Money Laundering regulations?

Under the Money Laundering regulations, firms are required to implement robust training and preventive measures as part of their efforts to combat money laundering and terrorist financing. This requirement emphasizes the importance of educating employees about recognizing suspicious activities and understanding their responsibilities in preventing money laundering.

Training ensures that staff members are well-informed about the regulations and compliance procedures, which in turn enhances the ability of the firm to identify and report any suspicious transactions. Preventive measures may include implementing risk assessments, establishing customer due diligence processes, and maintaining policies to monitor and report unusual financial activities. These collectively play a critical role in fostering a culture of compliance within the organization, aligning with legislative efforts to combat financial crime.

Other options, while they may involve aspects of operational policy within firms, do not directly reflect the essential requirements placed upon firms to ensure effective compliance with money laundering regulations.