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Client take on procedures and MLR

Client take on procedures and MLR

Didn't find your answer?

I have spent what now feels like weeks but is in reality is just this morning, trawling through the ICAEW website and other places looking into what I need to do.

Having recently set up on my own I have now in the process of taking on my first client.

What do I need to do from a money laundering regulations point for taking on a new client and do I need to register with someone somewhere?  

I am sure this is all really straight forward and I just haven't read the right 3 lines of legislation ... but I am really struggling to find the answers in nice straight forward plain English!

Thank you in advance for your help ... I am off to sort out the headache this is causing!

Rachael

Replies (23)

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Euan's picture
By Euan MacLennan
14th Jul 2011 13:25

Are you a qualified accountant?

The various accountancy and other bodies listed on the HMRC website are designated supervisory authorities for ML purposes, so if you are authorised to practice by one of them, you are already registered through them.  If not, you must register with HMRC.

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By Jekyll and Hyde
14th Jul 2011 13:30

I may be unhelpful, but....

.... have you had any experience in general practice? You have branded yourself Simplified Accounting Limited and it would appear you do not understand money laundering rules, which makes me question whether you have any experience at management/partner level in an accountancy practice and are capable of undertaking a . I am assuming you are ICAEW so you should hold their practising certificate and therefore you should be covered by them, if not need to register with HMRC. May I suggest that you attend a seminar on Money Laundering (Mercia do a decent one and it is in October 2011).

Other than that i cannot help any further, except Know your client, and know you product.

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David Winch
By David Winch
14th Jul 2011 13:57

Try this

As a place to start, have a look at this which I produced with Tim Good. 

David

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By Rachael-SimplifiedAccounting
14th Jul 2011 14:04

Ta

Thank you Euan Maclennan ... that was the answer I needed ... now if only the ICAEW could say that in straight-forward terms!!

Chesterfield Accountancy .... no need to be rude, I thought the point of accountingweb was to be a place for support and advice ... perhaps I will think twice before asking anything in future. 

I am a qualified accountant, have my practising certificate, PII insurance, data protection act registration etc but just needed to sort out the final procedures for this.  Having worked for a large firm for over 10 years I know what I am doing and how to do things but as is often the case with large firms, things get centralised within an office.  It was the lack of personal touch, the politics and the culture of bill, bill, bill that made me decide to leave and set up on my own.

Given I have only been up and running a few weeks taking on a client and having others in the background wanting to come on board is not a bad start ... hence the need for an answer now rather than spending time trawling through the ICAEW pages.

 

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By Guest1
14th Jul 2011 15:08

May I offer a warm

welcome to Aweb Rachael. At first glance you have a great website.

And, Chesterfield accountant, although not wanting to be unhelpful, we all had to start somewhere and, remember, "the more the monkey climbs the tree, the more you see its nuts!

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By Moonbeam
14th Jul 2011 15:53

Welcome

Rachael I am sorry about the censorious reply you got.

Please bear with us. There are some fantastically knowledgeable people on this forum, which is why I come back again and again. I feel my own knowledge isn't as good as it could be and this is the place to come to find out more.

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By Rachael-SimplifiedAccounting
14th Jul 2011 16:41

Thank you for the welcomes ....

Thank you to those of you who have said welcome ... I will continue on here and hopefully at some point I will be able to help you all in return ... after all, we all have our strengths and weaknesses ... the key is knowing when you need to ask for help!

 

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By Jekyll and Hyde
14th Jul 2011 16:48

Rachael, sorry for coming over rudely....

.....unfortunately I see (and also read any questions articles) too many computer experts, book-keepers and accountants with little or no experience in general practice/tax setting up accountancy practises and not having a shred of knowledge of what they are doing. Some of the accounts I have been witnessed to are just unbelievable. This is why my initial response was rather negative. I am pleased to see that this is not the case and I sincerely wish you all the luck with the move away from employment into self employment.

As I mentioned in my previous Mercia do a good money laundering couse.

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By ireallyshouldknowthisbut
14th Jul 2011 17:34

hi

As a random aside, nice website Rachel, but I would make more of the fact you are a CA personally.  Spme people  (generally the ones with some money) will look for a Chartered Accountant, it does look a bit like you might just be a bookkeeper at first glance. No-one has a clue what an ACA is outside of the proffession. Slap the ICAEW logo on!

My suggestion for money laundering is Veriphy.

£4 an ID check, no minimum order. Saves asking people for originals and something nice to put in the file for the practise assurance visit! Also does dig up a bit of dirt on people from time to time which is useful....

If you are a rookie you can basterdise the ICAEW engagement letter into something useful in a couple of hours and make a generic one for tiddler tax return clients and save the full monty for the larger clients.

 

 

 

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By Old Greying Accountant
14th Jul 2011 17:35

Hi Rachael

Nice to see your name spelt "properly" (all the ones I know don't have the second a!)

We do our AML checks online using AMLSearch and is not expensive. Ours is a direct link through IRIS so not sure of the tradesmans entrance, try here!

https://www.amlsearch.co.uk/registration.asp

This is useful

https://www.amlsearch.co.uk/pdf/template/The%20Risk%20Based%20Approach.pdf

Hope you stick around, it can be quite fun at times but you do need a thick skin sometimes - you'll soon work out who are the troublemakers!

 

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By petersaxton
14th Jul 2011 18:24

Welcome, Rachael

I am one of the troublemakers.

We now know that you have plenty of experience but, in fairness to Chesterfield, I would have thought that somebody like you could have dealt with your problem yourself. There's plenty of advice around - for example

http://www.hmrc.gov.uk/mlr/

You just need to Google.

I'll look forward to you putting Chesterfield in his place when you have the opportunity!

Good luck with your practice. You seem to have a nice simple website and a no nonsense approach.

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By Rachael-SimplifiedAccounting
14th Jul 2011 19:08

Thank you ...

... to you all for your welcomes and to Chesterfield for the apology ... accepted.

Thanks for the suggestion of making more out of being a chartered accountant ... hadn't considered that point about people not knowing what ACA is ... will have a play with the website! 

ICAEW logo ... again ... good idea ... I will google how to nick it :)

Suggestions of where to use on-line are greatly appreciated as the ones I have come across so far are looking costly (especially when just starting out).

Finally ... yes, I was looking for help on here rather than trawling round the icaew website and HMRC website as I was after a quicker solution ... when you mainly working school hours every second counts!

Thanks again and I look forward to all your help in the future.

Rachael

(and of course, this is the ONLY way to spell it correctly!!! :) )

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By Old Greying Accountant
14th Jul 2011 21:23

Don't listen to Peter ...

... just look at the picture, he's just a big puss cat, tickle his tum and give him a bowl of cream and he's fine :o)

Just keep asking the questions, most of the ones I ask I could find out, but if someone has just done the same thing then they can save me hours. The pay-back is keep looking at the questions, and reciprocating if you can, that way we all save loads of time and make more money, as well as getting ideas to improve our practices.

 

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By Top_Cat
14th Jul 2011 22:37

OGA

..........  as well as getting ideas to improve our practices.

 

 

Posted by Old Greying Acc... on Thu, 14/07/2011 - 21:23

 

Improve it ??????

I want to get rid of mine - but bl**dy Camelot just wont cooperate :)

 

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By bernard michael
15th Jul 2011 09:07

Money laundering query

Welcome to the harsh reality of self employment To digress fom ML, I don't know what systems you are/intend using but can heartily endorse Taxcalc fos tax returns and VT software for accounts. Both are easy to use, have good support and are cheap

Keep posting - AWEB is a great source of knowledge

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By Rachael-SimplifiedAccounting
15th Jul 2011 11:35

Software ...

... spent a lot of time 'lurking' on here at recommended software and VT Accounts / Transaction + and TaxCalc are the ones I am going to get as they seem to be highly regarded, easy to use and a sensible price! 

But thanks for the recommendations - always appreciated.

Rachael

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By JOHNCOOPER
20th Jul 2011 10:30

MLR Procedures

 You will need to get a passport/driving licence photo from your client + proof of residency eg. utility bill, council tax bill. I would also suggest that you open a file for each client showing what the client does for a living; whether any foreign trade is involved. The HMRC site has details on MLR requirements.

You do need to be registered either with a professional body or with the Revenue. Some professional bodies tend to get a bit [***] about MLR, so I would recommend registering with the Revenue.

 

Good Luck

 

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By Rachael-SimplifiedAccounting
20th Jul 2011 11:01

Thank you everyone

Thanks for all the advice.  The ICAEW are my supervisory body and I have registered with AMLSearch and Veriphy to get the info I need plus am chasing up the client for the copy documents.  

Everything is now in hand.

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
20th Jul 2011 11:22

MLr electronic searches

We use AMLSearch - just a note to say don't bother with the non-personal searches (i.e. companies) because if you look them up on CoHo you can verify their existence and then download the directors and shareholders for £1 - no need to pay a tenner for it! ;)

The personal searches are great though - £5 to verify the ID of someone we can't meet (as we have clients all over the UK) is a bargain.

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By geoffmw1
20th Jul 2011 16:14

The ICAEW logo

is freely obtainable on the ICAEW website and is recommended to be included on your letterhead and e-mail.

 

There is absolutely no need to  "nick" it.

 

 

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By Rachael-SimplifiedAccounting
20th Jul 2011 16:52

ICAEW Logo ...

.... don't worry, I didn't "nick" it ... the smiley face at the end of that comment should have indicated I was joking ... guess it got lost somewhere between my head and the keyboard.

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By frauke
27th Jul 2011 13:30

MLR

"You do need to be registered either with a professional body or with the Revenue. Some professional bodies tend to get a bit [***] about MLR, so I would recommend registering with the Revenue."  - I don't agree because.........

- If you are a member of a professional body you must register with them.  Anyone registered with the Revenue and also a member of a professional body will find they are not covered by the revenue registration - who will happily take your money and when they find out, let you know that you still have to register with your professional body!  Revenue registration is only for anyone not a member of a ML approved professional body.

 

 

 

 

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By Old Greying Accountant
27th Jul 2011 15:38

I don't think ...

... you need "register" with your professional body.

If you trade under their credentials they are your regulator - if you are ACCA and ICAEW not sure who trumps who or if you can decide.

 

 

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