I'm in the process of starting a Bookkeeping business.
I've just received a folder from the ICB regarding Money Laundering,, FFS Just skimming through it, it looks full of legal crap and forms.
I can't stand reading boring stuff like this, sends me to sleep. Do I really need to read though and know all this stuff? What's with all the forms for god sake?
I had a brief understanding of money laundering but I didn't expect anything like this to be dropped off at my house.
Starting a bookkeeping business is beginning to look like a real ball ache.
Am I getting stressed over nothing here, does it look worse than it really is??
-- Edited by wesker on Wednesday 18th of March 2009 04:09:16 PM
It may be boring etc.... but very crucial to you providing a legitimate and professional service to your clients and fulfilling your responsibilities as a bookkeeper.
I would suggest you read through it and fully understand it before taking on any clients.
Yes, it is a shock when the folder arrives ! but for the sake of running a professional bookkeeping service you sometimes have to read the odd `boring` bit if info I`m afraid.
Sorry, but there is no way around it, you must read it and inwardly digest or you could come a cropper.
If you dont fully understand MLR and how to spot the signs etc., you could become implicated somewhere down the line if one of your clients is not legit, and you become under investigation.
Im not saying that that would happen, but the MLR is there for a purpose and as bookkeepers, not only do we provide a valuable service to our clients but with this added responsibility, we owe it to ourselves to take on board MLR - its now part of the `red tape` that we have to abide by unfortunately.
I met with new client a while ago and after having a look at their box of tricks, I knew something was not right, I simply walked away from the job after telling them why I would not take the work on. Perhaps I was a little harsh but I have since found out that this particular client has gone through two other bookkeepers.
Fair enough, but at the end of the day common sense tells you when something isn't kosher and I wouldn't deal with anyone like that anyway, in anything not just bookkeeping.
What's with all the forms ?
-- Edited by wesker on Thursday 19th of March 2009 10:26:00 AM
Does this MLR apply if we are just keeping records and never touch cash, or to all bookkeepers?
I've had a look at the HMRC website and it seems you have to get your clients to sign up to say they are not money laundering (well they would hardly say if they were anyway!). My clients moan enough about the bureaucracy they have to deal with. They'll love that on top of everything else!
Is it better to sign up with the Institute of Certified Bookkeepers as it seems you do not have do to both?
Fair enough, but at the end of the day common sense tells you when something isn't kosher and I wouldn't deal with anyone like that anyway, in anything not just bookkeeping.
What's with all the forms ?
-- Edited by wesker on Thursday 19th of March 2009 10:26:00 AM
Yes, common sense does prevail and we can just walk away, Im for ensuring that the brown stuff doesnt hit me, so I have no problems with turning down work if need be.
Those forms are perhaps a little excessive, but as I have said, this red tape is an unfortunate part of our work now.
The MLR does apply to bookkeepers even if you do not physically handle cash. In its simplest terms bookkeeping is a paper trail, recording money into the business one end to out the other end, the reocrds and management reports we produce for clients is as an acurate account of that money as we can give. Of course we can only record via the information we are given !
What do you mean by ;-
``Is it better to sign up with the Institute of Certified Bookkeepers as it seems you do not have do to both?``
Even with ICB, you are provided with a large file/info on MLR, together with various forms that you need to complete for all clients, so there is no getting away from `form filling` even if you are with IAB or AAT etc.,
I know what you mean by some clients moaning about more bureaucracy !
It states in the information provided by HM&RC that ASPs need to register if their business is not supervised by a designated professional body such as the Institute of Certified Bookkeepers.
My logic is, if you are a member of that then, according to their guidelines, you don't need to pay another £90 + to register with them.
It would be cheaper to register with HMRC at £90 annual fee.
With ICB, you would expect to pay at least £126 annual fee - this includes Associate membership (£60 - this is the lowest level at which you can apply for a practicing certificate) then an additional £66 for a practicing certificate. ICB automatically register you with HMRC as a practicing bookkeeper for MLR.
Also, bear in mind that if you are not already registered with ICB you would need to sit their exams or provide evidence of your competence.
You do get good support and advice from ICB, you just need to weigh up the pros and cons.
It would be cheaper to register with HMRC at £90 annual fee.
With ICB, you would expect to pay at least £126 annual fee - this includes Associate membership (£60 - this is the lowest level at which you can apply for a practicing certificate) then an additional £66 for a practicing certificate. ICB automatically register you with HMRC as a practicing bookkeeper for MLR.
Also, bear in mind that if you are not already registered with ICB you would need to sit their exams or provide evidence of your competence.
You do get good support and advice from ICB, you just need to weigh up the pros and cons.
Another pro that I would add is that you get a good deal on insurance as well when registered with the ICB
All self employed bookkeepers must comply and be fully familiar with the money laundering regulations. Failure to comply can lead to prosecution and very severe penalties. Anyone wishing to become a self employed bookkeeper should be fully aware of this before they finally decide as I think many people are not fully aware of these legal requirements.
All self employed bookkeepers must comply and be fully familiar with the money laundering regulations. Failure to comply can lead to prosecution and very severe penalties. Anyone wishing to become a self employed bookkeeper should be fully aware of this before they finally decide as I think many people are not fully aware of these legal requirements.
There's nothing like putting a downer on something in a first post is there. Jesus Christ
I think steve12 was possibly just getting a bit frustrated with this thread.
You have to comply with MLR if you want to be a bookkeeper, full stop.
Better to read through those forms you received than questioning the need for them, in my humble opinion.
If he's frustrated then why read it, no one is holding a gun to his head.
To end.
I skimmed over a bit of the folder and all I see is common sense stuff, I know not many people have that these days, but some people still possess it, me being one of them.
Besides, the law in this country is a joke these days so I doubt there's much to worry about if a genuine mistake was made by someone anyway.
I'm not going to be worried by it and I don't think anyone else should be dispite the Gloom posts.
