Money Laundering Client Difficulties - The Book-keepers Forum (UK)

debbiet · Newbie

Money Laundering Client Difficulties

Merlion ABS · Senior Member

Yes its difficult to get the info. especially when you ask for photo ID such as a passport.

Not everyone is willing to give that sort of information to someone they don't know.

I personally don't think Bookkeepers should fall under Money Laundering as Accountants are caught by it and they are the last line so to speak. But then not all self employed businesses or limited companies use accountants as they are capable of doing it themselves.

Which give to reason, why make bookkeepers comply? if a business is doing it all themselves, they wouldn't need a bookkeeper any how.

its just another way for the Revenue to make money without giving anything in return.

Seems strange how we are forced to snitch on businesses if we suspect anything yet have to pay to do it, surely we should be paid for doing it!!

Rant over!

gbm · Guru

Hi Debbie,

Just print something out which shows that bookkeepers need AML ID that you can show the client. Pain in the backside I know, but it has to be done.

Re Merlion's point, there are many clients who use bookkeepers but submit stuff themselves, and many who do bookkeeping themselves and use accountants. The rules unfortunately cover bookkeepers - it's bad enough that legal privelige only covers solicitors and not accountants - so I guess we must all abide by them. I know of at least 2 bookkeepers who I'm pretty sure haven't registered with anyone, so it comes down to being able to sleep at night. Which seems like a good idea at this hour!

Peasie · Expert

Merlion ABS wrote:
its just another way for the Revenue to make money without giving anything in return.

I don't think it's so much the money - more the bookkeepers etc becoming workers for HMRC but getting no money for it. And if you don't "grass" someone up then you get clobbered as well.

ICBUK · Guru

Hello,

I don't think you get clobbered for making a report on someone? Never heard of it here at the ICB.

Re Merions point, like you say a lot of businesses don't use accountants, but even if they do, a lot of money laundering activity may be overlooked by an accountant as the 'final' figures may be perfectly sound.

I think if it works well, it will be a good benefit to the country, but also to the bookkeeping profession, as already the ICB has noticed a change in peoples views on the bookkeeper, within government etc, because bookkeepers are listed within this law.

To begin with I personally saw it a way of removing (or renaming) those people who call themselves bookkeepers but actualy are just data inputters or less, but who can make costly mistakes and tarnish the name of the bookkeeper profession.

Unfortunately it has been opened up so anyone can register with the HMRC, including those that have failed entry exams or even been expelled from a professional body.

Ok Personal rant over (not the official view of the ICB) biggrin

stephen72 · Senior Member

I have always thought that it is unfair that we have to regoister for MLR when people who do the accounts themselves do not have to register.
In my opinion those who use bookkeepers and accountants will be the ones who have nothing to hide more focus needs to be put onto the ones who do the accounts themselves .

Just my opinion
stephen

Peasie · Expert

ICBUK wrote:
Hello,

I don't think you get clobbered for making a report on someone? Never heard of it here at the ICB.

I said if you "don't" grass someone up. If you turn a blind eye.

It's like if you know your neighbour is claiming unemployment benefit but you also know he does a few days paid work every now and then. If MLR applied to this part of life you would be breaking the law by not reporting him.

We are the unpaid police of HMRC.

debbiet · Newbie

Thankyou all for your views. I know this is something that is a very important requirement now, but it just seems strange when I speak to my clients accountants they say they are not aware of these requirements even for themselves and this is not just one company I have dealt with ,where they say they don't know about it, and just makes me doubt my requirement to do it,(but I do) if nobody else seems bothered or made to do it by Law. Should all Accounts professionals by law be doing this?

BudgetB · Guru

Yes they should. There is no 'opt out' clause (unfortunately!).

-- Edited by BudgetB on Wednesday 12th of January 2011 02:12:45 PM

Peasie · Expert

debbiet wrote:
it just seems strange when I speak to my clients accountants they say they are not aware of these requirements even for themselves

The ARE aware - they are just burying their heads in the sand.

meldowie · Veteran Member

If you have a client who is associated with an Accountant and that accountant has done their MLR checks on that client you can have the accountant write to you to say they have done this. Or something to that effect so if the client won't give YOU this info they would have to give to the Accountant. It still just an issue of building the Bookkeepers reputation and importance with clients/businesses. We need to be taken more seriously and looked at as professionals just as important if not more to a business as an Accountant or Solicitor is.

I have never had any problems with my clients giving me this info. They are fine with it and understand what it is about. I just explain that by law I have to gather this info, would rather not as it is more admin for me to worry about..............

Anthony2011 · Member

I had a visit from MLR Compliance Officers last August, they gave me about 4 weeks notice.
I contacted all my clients about 20 in total from LTD companies, partnerships, sole traders and a working mens club. I had no problem getting the info, photo's etc. When they visited me at my home I had to prove I was who I said I was (now thats a joke) anyway they told me they were satisfied I was complying with the law and they were happy with my Risk accessement policy. As for Chartered or Certified Accountants, they are supervised by their own association, there are about 14 Supervisory Authorities, and if you are not a member of one of these then by law you should register with HMRC who are the supervisory authority for all the others. Now here is the loop hole... I put it to the compliance officer how would HMRC know if an accountant or bookkeeper was not in their respective associations, his reply was they would not know, and went on to say we are on trust to register. I guess you can take your chances but if you have not registered and they find you, then you could be in for a hefty penalty. Best wishes and be lucky

Tony

debbiet · Newbie

I am glad your inspection went well, and yes I am lucky enough to be registered with the ICB.I have just been feeling that it was only us that were having to do it as every one I spoke to in the same business did not have a clue.

HendyPhilhendy · Guru

Its one of the great reasons to be allocated to an association.

I actually think it is quite important to ensure that you do know that a client is who they say they are. If there are transactions that you are not comfortable with you need to be prepared to deal with them accordingly.

Don't forget its the people that are committing fraud, tax evasion etc. that cause our taxes and stuff to be increased!

Suffolker · Senior Member

Tony, just wondering who it was that did the MLR inspection? are you with a governing body or was it HMRC?

Anthony2011 · Member

I am supervised by HMRC and it costs me £120 per year. hope you find that useful...best wishes Tony