ICAI issues new money-laundering guidelines

The Institute of Chartered Accountants in Ireland (ICAI) is to issue guidance to members on the requirements of new anti-money laundering regulations due to come into force in the UK on March 1.

The guidance on the new regulations, which have been extended to include legal and accounting firms among others, previously only applied to the regulated financial services industry, has been prepared in conjunction with the Consultative Committee of Accountancy Bodies (CCAB).

The definition of ‘money-laundering’ has been extended by the Proceeds of Crime Act, 2002, to include not only sophisticated laundering schemes but also the possession of any proceeds of crime, by the offender or a third party. The ICAI warn that as there are no 'de minimus' limits in the legislation, even for small amounts, this means that any criminal act resulting in gain would constitute a money laundering offence that must be reported.

ICAI President, James Hunt, said: “Two issues have been of particular concern to the Institute – the absence of de minimus provisions in the legislation and the issue of legal privilege. These issues are still the subject of discussions with Government which now recognises the need for manageable reporting processes."

The guidance issued by CCAB makes clear the legal obligations on members arising from these new guidelines including identification procedures for all new clients accepted after March 1, and maintaining transaction records.

Procedures will require that all staff and partners engaged in the provision of accounting services, taxation, insolvency or audit services and other services provided by an accountant, to report money laundering suspicions to the 'Money Laundering Reporting Officer'.

Mr Hunt said: “ICAI will continue to work with Government to make sure that the reporting obligations are made as clear and concise as possible.

"The money-laundering regime is aimed at tackling real criminality. We need to make sure that it does not operate in such a fashion as to impede the everyday work of accountants and will continue to press Government to recognise that if that is to be achieved further issues need to be addressed.”

Under the new regulations bodies that fall within their remit must appoint a MLRO who is obliged to report suspicions of money laundering to the National Criminal Intelligence Service.

(SP)