Money Laundering

Key featured items

• Revised money laundering guidance

  Details of the revised guidance for all entities providing audit, accountancy, tax advisory, insolvency or related services, such as trust and company services, by way of business, on compliance with the law from 15th December 2007 is provided here. In addition links to the previous draft of the CCAB guidance (including details of changes resulting from the consultation) and links to an exposure draft of the additional guidance for tax practitioners are provided here.

• Non-executive directors, trustees and interim managers

  Non-executive directors, trustees, interim managers and others acting in similar roles may be affected by the Money Laundering Regulations 2007. It is not currently clear how far the scope of the requirements will extend, but more details of the current situation is outlined here.

• Supervision of firms under the Money Laundering Regulations 2007

  The new regulations require firms providing a variety of services, including accounting, trust or company services, to have a supervising authority. For member firms in the Practice Assurance scheme that means the Institute. For other members, following discussions with HM Treasury, we are able to act as the supervisory body instead of the HMRC. Here we cover general information on supervision, the supervision if firms subject to practice assurance and the supervisions of other firms and individuals, including interim managers and Non-Executive Directors.

Further Items

• Summary of key points in the Regulations 2007

  Is it all change? Don’t panic or be lead into panic by others. The new regulations do not mean significant change for firms who are already acting in accordance with previous CCAB anti-money laundering guidance. Firms should be able to build upon their current policies and procedures. However there are some changes which you should ensure have accommodated.

• Summary of changes since the second interim guidance

  A technical release summarising changes to requirements for firms since issue of the second interim guidance. Covering everything from the privilege reporting exemption and overseas offence to client identification and risk based monitoring under the Money Laundering Regulations 2007.

• Ongoing monitoring - practical implications for existing clients

  Do the requirements to carry out ongoing monitoring of customer due diligence measures and client’s business relationships mean that you must obtain a passport and utility bill from your existing clients or that you must investigate all the business affairs of your clients?

• Money Laundering - electronic client identification resources

• SARs - Top tips for effective reporting

  The Serious Organised Crime Agency (SOCA) have expressed their appreciation for the Suspicious Activity Reports (SARs) that accountants provide. By 'mining' the database of SARs and investigating similarities, trends and patterns, Law Enforcement have been able to uncover and prosecute organised criminal activity

• Making SARs safely - preserving confidentiality for yourself and your clients

  The Serious and Organised Crime Agency (SOCA) takes the need to protect the confidentiality of reporters very seriously. To guard against inadvertent or erroneous disclosure of a SAR, appropriate reporting procedures can also be adopted by the accountancy practice making the report. Read these tips for making SARs safely

Key Documents

• Background and representations

• TECH 07/06 The confidentiality of money laundering suspicious activity reports (SARs) in the United Kingdom

  Analysing the situation in England and Wales on the reporting of money laundering and terrorist financing, in relation to prevention of the disclosure of the identity of reporters to suspects or their representatives (PDF 81kb/8 pages) issued 2006

• Second interim guidance on money laundering (effective February 2003-15 December 2007)

  The former guidance on compliance with the Money Laundering Regulations 2003 and the money laundering provisions of the Proceeds of Crime Act 2002, for all accountants. Replaced by Anti Money Laundering Guidance for the Accountancy Sector issued by CCAB

• Privileged circumstances

  Technical release issued in February 2006 providing guidance on the exemption from reporting knowledge or suspicion of money laundering formed in privileged circumstances

• Reforms to the AML reporting requirements

  The Proceeds Of Crime Act 2002 (POCA) As Amended By The Serious Organised Crime And Police Act 2005 (The Act)

• Money Laundering - A tax Practice Supplement from the Tax Faculty TAXline Tax Practice no 4, September 2003.

  A supplement to TECH 15/03, providing guidance for tax practitioners. This should be read in the light of the recent changes including the additional guidance for tax practitioners (appended to the CCAB issued guidance for the accountancy sector).