Expert's warning over new money laundering laws
New regulations designed to tackle money laundering will put a greater burden on businesses than ever, warns Vincents Solicitors commercial director Ross Wellman.
Business is becoming the first line of defence against money laundering and terrorist financing.
The list of firms subject to the new regulations is not limited only to banks but any business undertaking a series of defined financial activities, such as lending, leasing and payment services.
Everyone from lawyers and accountants, to estate agents, casinos, car dealerships and auction houses. These companies are expected to implement a raft of new procedures, and are at risk of severe punishment, including steep fines for simply neglecting to keep proper records.
Businesses must be clear about their customer’s true identity, understand their client’s background and motivation for the deal, and take adequate measures to establish the source of funds.
Robust due diligence procedures must be drawn up and implemented or a penalty incurred. There are even greater repercussions if a crime took place and no policies were in place and followed.