Money laundering laws come into force

New regulations on money laundering come into force on 1 March and those affected need to be aware of them or risk criminal prosecution, including up to two years in prison.


New regulations on money laundering come into force on 1 March and those affected need to be aware of them or risk criminal prosecution, including up to two years in prison.

New regulations on money laundering come into force on 1 March and those affected need to be aware of them or risk criminal prosecution, including up to two years in prison.

Money laundering is the process by which money that has been obtained illegally is disguised as coming from a legitimate source. Those evading tax or indulging in insider trading often use money laundering to cover their tracks.

While the financial services industry has been regulated for some time, the introduction of the new laws will cover a much wider group of companies, including accountants, tax advisers, auditors, lawyers, estate agents and those who accept cash payments in excess of €15,000 (around £10,000), such as art or antique dealers.

The Money Laundering Regulations require certain businesses to implement detection and prevention procedures and comply reporting requirements. It is important to be aware that if you know or suspect money laundering is taking place means you must report it. If you do not you are committing a crime.

To comply with the regulations it is essential that you verify the identity of new customers and keep evidence of the identification; set up a system of maintaining customer records for 5 years, report suspicions of money laundering to the National Crime Intelligence Service and train employees to recognise suspicious activity.

(01/03/04)

Related Topics

Leave a comment