New accountant exemption re Money Laundering Regs

New accountant exemption re Money Laundering Regs

Didn't find your answer?

The ICAEW are very proud of the new Money Laundering exemption for accountants which puts them on a level playing field with solicitors.

Their guidance talks about the exemption applying when legal advice is given.

It goes on to say that the communication must relate to "advice concerning the rights, liabilities and obligations or remedies of the client under law".

At first I was dubious as to how often an accountant gives such legal advice but would it apply, for example, in the following scenario?

Target client states he has been self employed (but not declaring income to HMRC) for several years. Target will not confess all to HMRC.

Accountant will presumably have advised what Target's obligations etc are under the tax law. Is an NCIS report required here or does the new exemption apply?
Steve Coates

Replies (1)

Please login or register to join the discussion.

David Winch
By David Winch
16th Feb 2006 15:24

See news item

Steve

It depends in part upon the client's motive in giving the information to his accountant. Is he seeking legal advice or is he trying to find ways to continue to evade tax successfully?

See the 'latest news' item which deals with this point by clicking here.

It should be said that the change is historic. As far as I am aware legal professional privilege, which is an ancient legal principle, has never before been extended to non-lawyers. The ICAEW is right to be proud of its achievement!

David

Thanks (0)