Money laundering and CIS certificates

Money laundering and CIS certificates

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The contractor has failed to issue certificates despite being asked to do so on numerous occasions. We have written to the accountants (twice) to say we will have to contact HMRC and asking for their help. And still nothing has happened.

We are just about to write to HMRC but do we also have to submit a money laundering report?

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David Winch
By David Winch
20th Nov 2015 09:55

What is your suspicion?

You do not say what it is you suspect.  Are you saying that you suspect that the contractor has deducted tax but has dishonestly not accounted for that tax to HMRC? Or are you saying you think the contractor / his accountant are slow at replying to letters?

David

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By JSJ54
20th Nov 2015 10:02

Which do you think?

Bearing in mind we are both full grown men.

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Replying to Paul Crowley:
Stepurhan
By stepurhan
20th Nov 2015 10:13

Relevance?

JSJ54 wrote:
Bearing in mind we are both full grown men.
What has this got to do with anything?

David was simply trying to clarify what it is you suspect, so he can tell you whether it is reportable or not. Given his expertise in the field, his advice on this matter could well prove invaluable. If you'd rather make glib remarks than tell him what he needs to know to advise you properly then I would point out that it is your responsibility, as a full-grown accountant in possession of all the facts, to decide whether a report is appropriate or not.

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David Winch
By David Winch
20th Nov 2015 10:13

I think if you are considering a money laundering report you need to be able to set out clearly what your suspicions are & what the basis of that suspicion is - as well as setting out who you are, whom you suspect, what type of work you are doing in the course of which the information came to you, what the XX glossary code is, etc.

But key to your asking yourself 'Do I need to report this?' is asking yourself 'What do I suspect?' & 'Why do I suspect it?'.

Leaving the reader (especially a reader at the NCA) to guess what might be going through your mind is not helpful.

Personally I think you have good grounds to think the accountant / contractor are slow at replying to letters.

David

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By v.knazevs
20th Nov 2015 10:47

Similar situation
We are facing similar situation with a CIS contractor.

No statements received despite numerous contact attempts for the last 5-6 months. HMRC provided schedule of CIS deductions and this contractor`s name is not mentioned there, so have serious concerns that tax is deducted, but not declared properly and paid over to HMRC. Concerns of tax evasion.

Believe that we need to report it under AML. Am I correct?

Would highly appreciate your comments.

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Replying to Wanderer:
David Winch
By David Winch
20th Nov 2015 11:25

Report

v.knazevs wrote:
We are facing similar situation with a CIS contractor. No statements received despite numerous contact attempts for the last 5-6 months. HMRC provided schedule of CIS deductions and this contractor`s name is not mentioned there, so have serious concerns that tax is deducted, but not declared properly and paid over to HMRC. Concerns of tax evasion. Believe that we need to report it under AML. Am I correct? Would highly appreciate your comments.

My concern here is that "HMRC provided schedule of CIS deductions and this contractor`s name is not mentioned there".

It could simply be an administrative error (but one which the contractor should by now have spotted, corrected & issued you a deduction statement) but I think you do have reasonable grounds to suspect that the omission arises from deliberate dishonesty.

That being the case you have a suspicion which you are obliged to report to the firm's MLRO / the NCA.

David

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Replying to Ken Howard:
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By v.knazevs
20th Nov 2015 12:11

Thank you

davidwinch wrote:
I think you do have reasonable grounds to suspect that the omission arises from deliberate dishonesty.

That being the case you have a suspicion which you are obliged to report to the firm's MLRO / the NCA.

David

Thank you David.

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