Many UK Businesses Unaware Of Implications Of Money Laundering Regulations

by Robin Pilgrim, LawAndTax-News.com, London

30 April 2004

According to a survey of UK businesses recently conducted by BT, many firms which could be affected by the 2003 Money Laundering Regulations are unaware of the implications of the legislation.

In addition to affecting financial service providers, the regulations, which came into force at the beginning of April, apply to 'dealers in high value goods'.

Although this has largely been taken by businesses to mean art and antique dealers, jewellers, and retailers of goods such as cars and boats, wholesalers and those dealing in low value goods such as clothing may also come under the umbrella of the regulations, if they receive sufficiently large cash payments (currently over £10,000).

Speaking to the Accountingweb news service this week, fraud and money laundering expert with accounting firm Carter Backer Winter, David Cafferty suggested that:

"I believe that as many as 90% of firms who should know about the new rules are unaware of them."

He went on to reveal that businesses which are considered to be high value dealers (HVDs) for the purposes of the legislation will be obliged to register themselves with Customs and Excise, and will additionally need to appoint and train a Money Laundering Reporting Officer (MLRO).

"If VAT inspectors notice you do a lot of cash transactions, some of which are more than £10,500, they can ask to see your registration and speak to your MLRO. If you do not have them, you could be in big trouble," Mr Cafferty warned.

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