MJ News - 05/11/04

Money Laundering - are you prepared?

With the new Money Laundering Regulations coming into effect from 1st March 2004, many more businesses will fall within the scope of the legislation, and for some this will come as a bit of a shock.

If you run a business as an Estate Agent, Casino Operator, Jeweller, Antique Dealer, Auctioneer, or a Car Dealer, you may already be aware that the legislation regards you as a High Value Dealer with all that that entails. However, the introduction of the new Regulations means that businesses dealing in goods of any description will qualify as High Value Dealers if they accept cash payments of 15,000 Euros (about £10,700) or more. Thus, the reality is that the owners/directors of any business could end up in prison if they fail to do any of the following:

• Register with Customs & Excise as a High Value Dealer.
• Appoint a Money Laundering Reporting Officer.
• Get proper ID from their customers.
• Report suspicions of money laundering to the National Criminal Intelligence Service (NCIS).
• Provide training for all their staff.
• Establish document retention systems .

By including such a wide range of businesses the Government has considerably expanded the scope of those covered by the new regulations. Many businesses will most likely be completely unprepared for the new legislation. No doubt many will find themselves on the wrong side of the law purely due to the fact that they know very little about legislation that will, ultimately, bring about a change in the way in which they operate.

More information can be found on HM Customs and Excise’ web site.

Top  

© Copyright Maidment Judd 2004 - 2006. All rights reserved. This information has been produced for general interest. It is therefore essential to take advice on specific issues. We are unable to take responsibility for any outcome resulting from acting upon, or refraining to act upon, this information.