Am I seeing things AML

I have just watched a video sent to me by AML at HMRC

Didn't find your answer?

I have seen some things in my 40 years but the money wasted on a video released for staff to watch as part of training takes some beating.

The video shows a bizarre set up with regards to a reburbished restaurant was used to abuse staff and how the Accountants didnt find a report on how one of the foreign owners had been investiagted for trafficking. The Restaurant was a high flying entity clearly with a large form of Accountants.

My biggest client is a factory I have dealt with for 25 years with same owners - the smallest client is a window cleaner. Most other cleints are VERY small jobs that do three line Accounts. Could someone explain why I am required to do the same checks on these clients when this video has made me realise how wrong the AML rules are for my business. If a Law is wrong and not fit for purpose why should taxpayers funds these departments to make "fantasy" films like this. I am also told that each year SARS are reported upon and never acted upon. If someone could explain how these film in anyway fits in with what I do then I would be pleased. I do follow the rules of AML to the letter - the process of completing the AML checks takes longer than actually completing the Accounts and Taxes for many clients - when MTD if in full force it will take even longer.

I am wondering why HMRC have got us to this point when I now realise the very Goverenment that is legislating has allowed mass fraud to take place with BBL/SEISS Grants and CJRS Grants . Can someone please take Goverenment to task as its very much do I say rather than do as I do.

Replies (13)

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the sea otter
By memyself-eye
17th Mar 2022 17:28

Now you know why many are quitting this profession....

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By paul.benny
17th Mar 2022 17:28

Whilst I sympathise with your need to rant, you could apply similar logic to reconciliations, internal controls, audit of financial statements, all of which we accept as normal in finance world.

A business that I worked for had to screen prospective customers because the goods we supplied could potentially be used to do Bad Things. Of course the screening always came up negative. Until one day, it didn't.

The buyer didn't get their goods - instead, the got a visit from anti-terrorism police.

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Replying to paul.benny:
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By GHarr497688
17th Mar 2022 17:45

I can see your point however remember Accountants are self-employed individuals without state funding so maybe Government could fund the costs of these checks in a similar way that NHS dentists get funds or pre-schools get paid to look after children. If Accountant are expected to take part in HMRC processes and that of a financial police then they need paying just like anyone else.

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Replying to GHarr497688:
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By paul.benny
18th Mar 2022 09:08

Remember it's not just about being 'financial police'. If you aid and abet money-laundering, whether knowingly or not, you are also on the hook. Having appropriate AML procedures protects you.

It's not just accountants who have AML obligations - laywers, gambling businesses, estate agents, art dealers, dealers in high value goods, etc.

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Replying to GHarr497688:
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By Dib
18th Mar 2022 13:00

Presumably you are excluding employers, who are unpaid tax collectors, and VAT registered businesses who are likewise, oh and those who operate landfill sites or extract minerals (other trades are available) from those who need paying to take part in HMRC processes. It's just accountants is it?

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By More unearned luck
17th Mar 2022 19:42

"The video shows a bizarre set up with regards to a reburbished restaurant was used to abuse staff and how the Accountants didnt find a report on how one of the foreign owners had been investiagted for trafficking. The Restaurant was a high flying entity clearly with a large form of Accountants."

You didn't include a link, so I only have your description to go on.

A restaurant manger physically or mentally abusing his/her staff might be a crime, but I don't see how it is a crime that involves money laundering.

It seems that a report was hidden somewhere in the restaurant and a 'form' of accountants were required to conduct a search for the report, but none of them found it. Is that right?

Even if you think AML compliance is a waste of time, following the rules should avoid fines and reputational damage. For that reason alone you should play ball.

With coronavirus support grants the government had to strike a balance between getting relief to businesses quickly - before they went under - and placing anti-fraud procedures which would clog-up the rollout. You may feel that HMG stuck the balance in the wrong place, but you have the benefit of hindsight. It is a scandal especially if less than the utmost is done to bring the fraudsters to book. But the mess is understandable.

If the accountancy profession does it bit vis-à-vis AML, then perhaps more will b e caught than otherwise.

I add that some of the lost money was on correctly claimed grants by firms that have since gone to the wall.

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Replying to More unearned luck:
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By GHarr497688
17th Mar 2022 19:49

You obviously havn’t read reports on Aweb about SARS being ignored by Hmrc or recent parliamentary questioning of how aml checks were not completed by banks with Grants or Nat west allowing billions of pounds of cash from ML going through banks . Double standards .

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By RetiredTax
17th Mar 2022 22:23

Are you able to put the link/copy to the video on this thread. I would be interested to see it
Many thanks.

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By paulwakefield1
18th Mar 2022 07:35

This was a video written (and made?) by the ICAEW in collaboration with HMRC. I thought it was quite good (mildly entertaining anyway).

As for the same checks for all clients. These should be being risk assessed and small clients really shouldn't take much time to KYC.

There is a link here: https://www.icaew.com/-/media/corporate/files/learning-and-development/i...

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By paulwakefield1
18th Mar 2022 07:40

Just to add that I will chunter on endlessly about the iniquities of AML and regulation generallly until people's eyes glaze over and they suddenly develop a pressing need to organise their sock drawer.

But, on this occasion, I think your fire is misdirected.

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By I'msorryIhaven'taclue
18th Mar 2022 08:48

Nothing wrong with the Revenue training their troops. 40 years of practise might have taught you to spot the tell-tale differences between a people-trafficking restaurateur and a window cleaner with a bucket and bike clips; but HMRC staff may need guidance on which of them to investigate.

A 38 second self-awareness training video from John Cleese that applies not only to Revenue staff but I suppose to each and every one of us:
https://www.youtube.com/watch?v=7G_zSos8w_I&list=PLpTKCOx0LlcsdZRaKuWPbp...

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By Tax Dragon
18th Mar 2022 09:03

GHarr497688 wrote:

I am also told that each year SARS are reported upon and never acted upon.

a) who told you [i.e. how did they know?]?
b) what do you [or whoever told you] mean by "acted upon"? (Would conducting a brief background investigation that concluded that further action wasn't justified count?)
c) so what if it's true?

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By Justin Bryant
18th Mar 2022 14:32

I got that email too today with that video and had the prescience and good sense to immediately delete it.

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