Money Laundering
Money Laundering and the Proceeds of Crime Act
With effect from March 1st 2004 the Money Laundering Regulations 2003 and the Proceeds of Crime Act 2002 extends the requirements to report criminal activity to many new areas of business and in particular to solicitors. The Government’s impetus for widening the sector is part of the international fight against terrorism and drug trafficking.
Money Laundering is the process by which the proceeds of crime, and the true ownership of those proceeds are changed so that the proceeds appear to come from a legitimate source. The Proceeds of Crime Act includes such things as tax avoidance, VAT fraud, and money obtained from criminal activities.
All businesses in the regulated sector are required by law to report any suspicious activity to the National Criminal Intelligence Service (NCIS). Failure to report can lead to prosecution and imprisonment. It is also an offence to ‘tip off’ a suspected client that a report is being made to NCIS.
All members of staff employed in a solicitors practice are now required to be trained in order that they understand the new regulations and are able to identify money laundering or fraudulent behaviour and follow the necessary procedures for reporting any suspicions.
Businesses affected are also required to carry out checks on the identity of their clients prior to entering into a business relationship. These include verifying identity and address. We are required to keep these records for 5 years.
For Crossmans present and future clients we would ask them to be prepared to provide us with identity information when requested in order that we can continue to act without delay. Even where we have acted for you for many years we are still obliged to obtain this information. Compliance with the Money Laundering Regulation will hold no fears for the honest business and individual. All regulated businesses will be more vigilant and will be asking questions about the nature of transactions. We must ask our clients to be prepared to fully explain any unusual transactions and one’s which involve significant sums of cash.
Although this involves a great deal in terms of compliance, if the end result is the eradication of crime it will be worthwhile.
If you have any questions please speak to Claire Nunes, Managing Partner of Crossmans.
IDENTIFICATION REQUIREMENTS - RECENT LEGISLATION
We must confirm your identity at the very outset of a transaction.
Please could you arrange to come and see my secretary as soon as possible for a 5 minute appointment bringing with you the necessary documentary evidence.
Examples of what we are allowed to accept are set out below:-
WE REQUIRE:
Firstly Personal Identification containing a current photograph
One of the following:-
• Current signed passport or
• Photo-card driving license or
• National Identity card containing photograph
If you have none of the above please contact us.
Secondly Evidence of your address
We can accept any two of the following:- (These must be different from the documents above.)
• Confirmation from an electoral register search that a person of
that name lives at that address.
• A recent utility bill or statement, or a certificate from a utilities
supplier confirming an arrangement to pay for services on pre-payment terms
(we do not accept mobile telephone bills as they can be sent to different
addresses)
• Local Council Tax bill for current year.
• Current full UK driving licence, (old style provisional driving
licences cannot be accepted).
• Bank or Building Society or credit union statement or passbook containing
current address. P.T.O.
• A recent original mortgage statement from a recognised lender.
• Solicitor’s letter confirming recent house purchase or land
registry confirmation of address.
• Local Council or Housing Association rent card or Tenancy Agreement.
• Benefit book or original notification letter from Benefits Agency
confirming the right to benefit.
• EEA member state identity card.
• Inland Revenue self-assessment statement or tax demand.
• House or motor insurance certificate.
• Record of any home visit made; and
• An entry confirming name and address in a local or national telephone
directory.
3. We also need your National Insurance number.
Please do not send these items through the post. Please arrange to come and see my secretary as soon as possible for a 5 minute appointment, during which we will take copies of the relevant identification, with you retaining the originals.
IF YOU CANNOT COME INTO OUR OFFICE
If you are unable to come and bring your identification with you, you must take the relevant documents to another person local to you and ask them to certify:-
1. That the copies are true copies of the original and
2. That the photograph on the photographic evidence is a true likeness of you
You may take these to:-
• A UK solicitor
• An Accountant
• A Doctor
• A high street Bank Manager
We will need their name and address. Take a print out of this page with you.
IF YOU ARE OUTSIDE THE UK THE NECESSARY EVIDENCE CAN BE CERTIFIED BY:-
• An Embassy Consulate or High Commission of the Country of issue
• A qualified lawyer or notary or
• In the case of international students, the Registrar of a UK higher
education institution.