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A list of clients was purchased and paid for over 4 years by cash.The seller refused to issue a receipt even though one was sent to him giving the dates the cash was paid and the transactions it related to. The money was used, by the seller, to purchase a villa and business abroad.He now has told me that if any investigations occur, into his financial dealings, he will tell the authorities that he received no money at all and if I tell the authorities that the transactions took place then I am lying.How do I stand in this matter as far as MLR is concerned, the money I used mostly came from a loan.And is there anything I can do as far as getting proof that the cash was paid?


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15th Aug 2011 21:12

MLR etc

Based on the limited information, it seems to me that this information did not come to you whilst you were in the 'regulated sector' because it seems that you were not providing accountancy / tax etc services to a client when the information came to you.  What you were doing was purchasing a business asset.

So I do not think this falls within the scope of the MLR 2007.

If you are also acting as the accountant / tax adviser etc of the person to whom you made the cash payments then you have a difficulty - but I assume you are not acting for him.

So the next issue is are you yourself in danger of committing a principal money laundering offence?  I don't think you are as you have no involvement with 'criminal property' since the cash you paid over was legitimate monies when you paid it.  (It only becomes proceeds of crime when he fails to declare it.)

On the information provided it does not appear that you are engaged in any sort of criminal conspiracy with the recipient.  You presumably did not agree to pay in cash as a step in facilitating his tax evasion.

The next issue is are there any terrorist property implications.  It seems there are not.

Finally is there more than one person engaged in this tax evasion, was an offence committed after 12 December 2010 and are you in Scotland?  If the answer to all three questions is 'Yes' then you may have a reporting obligation under s31 Criminal Justice and Licensing (Scotland) Act 2010.  Otherwise you do not.

You can, if need be, produce evidence to support your assertion that you paid him cash.  You borrowed the money by way of a loan.  If that was a commercial loan you will have made a loan application (probably giving a reason for borrowing the money) and there will be evidence that you did borrow the money.  If you drew out the money in cash there will be evidence of the dates and amounts of those withdrawals.  Also presumably you actually have the details of the clients for which you have paid.  All that evidence supports your assertion that you paid in cash for the list of clients.

The recipient has an obvious self-interest in denying the receipt of the cash and he will have no independent evidence of that non-event.

So the likelihood is that you will be believed (and he will not).

Don't lose too much sleep over this!


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15th Aug 2011 22:02


delete the 20 multiple postings

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By Top_Cat
15th Aug 2011 22:29

Commente [moderated]

One point David missed - is this [member] really expecting others to believe that you bought a list of clients, didnt pay him, and he didnt sue you in four years?

Also of course, there will be a record of him purchasing the villa - if he didnt receive the money from you, then he would have to explain exactly where he did get the money from? 

I rather think that if he makes the threatened allegations, they will blow up in his face.

[Moderator - comment edited to remove personal abuse]

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By Top_Cat
16th Aug 2011 09:04

What "personal abuse" ?

What "personal abuse" ?


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