UK Businesses Unprepared For New Money Laundering Rules, Says PwC

by Robin Pilgrim, LawAndTax-News.com, London

20 February 2004

Tens of thousands of businesses in the United Kingdom are unlikely to be ready to comply with new anti-money laundering regulations set to come into force on March 1, according to PricewaterhouseCoopers Forensic Services.

The new laws extend reporting obligations to businesses dealing with high value goods, such as car dealers, jewellers, antique dealers, auctioneers and art dealers, who will need to make reports when cash transactions total more than £10,000.

Professional service providers such as accountants, law firms and tax advisers will also be affected by the new rules.

The PwC Forensic Services department has predicted that the transition is likely to be most difficult for sectors which lack a professional or supervisory body, and therefore have less access to guidance and information.

Speaking this week, Investigations and Forensic Services partner, Andrew Clark observed that:

"The extension of anti-money laundering laws leaves fewer loopholes for criminals to exploit. It will provide valuable additional information to the police, and prosecutions should rise. However, many businesses affected by the regulations for the first time will face an up-hill task to comply. Failure to do so may result in damage to company reputations and, possibly, in prosecution and imprisonment."

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