Irish Accountants Need To Be On The Alert For Money Laundering

by Caroline Maxwell, Tax-News.com, London

16 October 2001

Speaking at a ceremony to admit 140 new chartered accountants to the industry body, Institute of Chartered Accountants in Ireland President, Henry Saville warned that many criminals would use the introduction of the euro in January 2002 as a cover to launder illegal funds.

'If the money launderers are driven out of the traditional banking system they may well try to exploit the non-banking sector, including accountants and solicitors, to move their proceeds,' he warned last week. 'Accountants could unwittingly find themselves being an auditor or adviser to a business being used for money laundering.'

Although the 1994 Criminal Justice Act imposed obligations on 'designated bodies' (which takes in the vast majority of financial institutions) to take appropriate action to prevent, or assist in the detection of, money laundering, accountants and solicitors have not yet been designated by the government due to delays in finalising a harmonising EU directive.

However, in the interim, Mr Saville advised Irish accountancy firms to be vigilant, and to exercise best practice by training staff to identify suspicious transactions, gather evidence of the identity of potential clients, and ensure that adequate transaction records are kept and retained.

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