What is money laundering and why do we have to worry about it?
Money Laundering is a process used by criminals to convert money which is the proceeds of crime into respectable or clean money so that it can be introduced into the financial system without arousing suspicions as to where it originally came from. There have been procedures in force to counter this, (for example, with respect to drugs money) for many years.
Under the latest law, the proceeds of any criminal activity
are caught by money laundering legislation, not only in the UK but worldwide.
Adrian Leopard & Company (as are all financial service providers) is
subject to the requirements of the UK Money Laundering Regulations 2007. This means that for certain of our activities we must carry out
certain identification procedures when taking on new clients.
These procedures relate in our case to the following
as an insolvency practitioner in relation to work for which an insolvency
licence is required. For the purposes of this site, this will relate broadly
to administrations, voluntary liquidations and voluntary arrangements and
providing advice in the capacity of office holder of an insolvent entity.
as an external accountant. This is defined as the providing of accountancy
services and relates to this site if we record, review, analyse, calculate
or report on financial information. It is important to understand,
therefore, that if you want us to talk to you about specific financial
figures or financial transactions for your own business or private affairs
then we must follow the money-laundering procedures.
as a tax adviser. Sometimes it will be necessary to provide tax advice and
that activity is regulated.
We carry out identity checks by means of electronic
verification; this is very quick and efficient.
The information you provide to us is completely confidential
and used only for the purposes of money-laundering procedures.
What is not regulated
If you telephone our advice line for general advice concerning the law or procedures other than tax advice, then that advice is not a regulated activity and we may proceed without any money laundering due diligence requirement. You may even speak to us without disclosing your name if you wish. You will be regarded as a General Advice Only (GAO) client.
Our page of questions you might want to ask us contains many subjects and all of those can be dealt with on an unregulated basis.
If you decide to upgrade your contact with us so as to discuss your personal finances then you must convert to a Full Client (FC).
What do we normally require from Full Clients?
The law says:
- We must identify the customer and verify his identity on the basis of documents, data or information from a reliable and independent source.
- Where there is a beneficial owner involved who is not the customer, he must also be identified,
- We must obtain information on the purpose and intended nature of our business relationship.
- If we are advising a limited company, we need to know the full name, country of registration, registered number and address of the registered office, and also carry out the due diligence mentioned above in relation to the directors and beneficial owners.
Providing us with the necessary information is quite simple. If you are a British resident then normally your full name, address and date of birth is all that is required. You can send us this by e-mail.
If you are not a British resident, we may need more
information and in those circumstances, might ask you to complete the
money-laundering information sheet in the download section of the site.
It is not necessary to complete every field but the more
information you provide, the quicker and easier it is to complete verification
with less likelihood of having to come back to you for further information,
possibly having to provide original documents. If we have to do this, it may delay
the commencement of our advice service.
In the case of a company, we must obtain the same
information in relation to the directors and also the beneficial owner if that
is someone else.
What we do NOT do is snoop into financial affairs on a gratuitous basis. Accordingly, you should not be put off by the need for money-laundering procedures. Anyone you go to for similar advice is bound by the same regulations.