Money Laundering Regs

Money Laundering Regs

Didn't find your answer?

If an individual (who happens to be an accountant) is the executor of his father's will and within that will there are grounds to suspect tax evasion, is a report to NCIS required?

This is clearly a domestic relationship rather than a business relationship.

Thanks
Anon

Replies (1)

Please login or register to join the discussion.

David Winch
By David Winch
16th Feb 2006 19:20

You may think this answer is crazy!

When acting in a personal capacity you are only under the same legal obligation as every other individual in the UK.

That means that you do not have to report any suspicions you may have of money laundering by others.

However you do have to seek consent from NCIS for any money laundering you are engaged in yourself.

As an executor you will be involved in collecting and distributing the assets of the deceased. If you know or suspect that any of these assets are derived from criminal conduct (for example, tax evasion) then your handling of them will be money laundering contrary to one or more of sections 327 - 329 Proceeds of Crime Act 2002.

If you are not to find yourself liable for prosecution as a money launderer you need consent from NCIS to handle the assets. This means you need to report your suspicions to NCIS (using their standard form is sensible) and tick the 'consent required' box on Appendix 2.

You can expect to receive consent within 72 hours. (They seldom refuse consent unless assets are to be removed from the UK.)

NCIS will, of course, pass the information on to HM Revenue & Customs who will get in touch with you (if you don't get in touch with them first!).

If you are an MLRO you can get confidential one-to-one email support, information and NewsAlerts from my website www.mlrosupport.co.uk.

David
[email protected]

P.S. In the same way a solicitor assisting an executor has to obtain consent from NCIS for his own involvement in dealing with the assets of an estate where he suspects these have been derived from criminal conduct. But in the case of a solicitor (or accountant) performing this service as part of his business he also has an obligation to report the money laundering by the deceased and the executors / beneficiaries.

Thanks (0)