Funds from Hong Kong

I have recently seen a new potential client whom is in the process of buying a business in the UK. He has a legacy left to him by his late father in Hong Kong and these funds are currently being looked after by his brother, who is also resident in Hong Kong.

He is in the process of having these funds transferred to the UK to fund this new business venture.

This client has been resident in the UK for quite some years and holds a UK passport etc., so I am able to comply with the Money Laundering identification etc., but I understand I need to make further checks on the source of these funds. He is to provide me with copies (not originals as they are still in Hong Kong)of all supporting documentation regarding his legacy and the transfer to the UK.

My question is, what should I be looking for in particular to satisfy myself and of course comply with the Money Laundering Regulations that these funds are legitmate?

Any thoughts would be appreciated please?

Comments

I think you have already    1 thanks

The Black Knight | | Permalink

satisfied yourself the the source is not from the proceeds of crime. By asking the question and getting an answer. I don't think you need to prove his statement.

I would write a note on the file to KYB as when reading the FT tribunal cases this seems to be a regular explanation of how money in offshore bank accounts appeared.

re-structure..    1 thanks

dominovision | | Permalink

One idea is to change the structure around a bit. Create a company in Hong Kong which then buys the existing UK co 100%. His brother is a director of the HK co, so dividends to the ultimate beneficiary can be paid at low HK personal tax rate,15% ish if needed.    xx

He is then a director of the UK co, brother director of HK co. You only need conduct money laundering on the HK co as a client. Bros passport + source of funds is inheritance / HK trading. Depends on the size of business and expected turnover/profits to see if it would be viable against the admin overhead though.

 

Also KYC on the UK director    1 thanks

dominovision | | Permalink

Also KYC on the UK director if they are your clients (so passport ID etc)

davidwinch's picture

@dominovision    1 thanks

davidwinch | | Permalink

The brother would however be a beneficial owner of the client (because the UK client co would be owned by the HK co which would be owned by the brother) - and so it would still be necessary to deal with MLR 2007 responsibilities in connection with him.

David

BirdnCo's picture

Many thanks, but

BirdnCo | | Permalink

this client is only buying a small fish and chip shop, so will only be a sole trader/partnership with his wife.

Thanks for all replies, much appreciated.

I could not help it!!

dougc99 | | Permalink

I am glad your "sole" trader has found his "plaice" and that the sauce of the funds isn't fishy!!

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