Professional Clearance

Professional Clearance

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I have just parted with a client in unsavoury circumstances with "physical violence" being threatened by client who was also extremely verbally abusive.I have no doubt whatsoever that the threat would be carried out.The main reasons for parting were (i) vat returns for four quarters prepared but not submitted on client's instructions due to cashflow problems (ii) client living obviously beyond reported means which has been referred to on numerous occasions.I am ecstatic to have parted company with said client.I have now received a letter from new agent (CA firm) who interestingly do no actually ask for "professional clearance" but merely state "they have been asked to accept appointment". I do not wish to "pass on" this client without some kind of warning to the new agent. My instinct is to reply and be rid.Any advice on how to proceed would be appreciated.

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By cymraeg_draig
12th Feb 2010 10:51

Be careful what you put in writing.

 

I would suggest a phone call rather than putting anything in writing. 

 

 

 

 

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By User deleted
12th Feb 2010 12:19

I took the ACCA's advice

I had a client who was similar and really wanted to warn the new accountant in some way of ML issues.

I took advice from the ACCA and was advised to send the information requested with a statement as follows -

''Insofar as our ethical and legislative responsibilities allow us to reply, we can confirm that we are not aware of any professional reasons why you cannot accept the appointment.....''

and to ensure this was the firms policy to adopt this wording in ALL cases to avoid any possible charge of tipping off.

I agree its a difficult one - on one side its wonderful to get rid of the client, but at the same time you dont want a fellow accountant to endure the same experience, especially if the accountant is local and perhaps a new practice.

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By User deleted
12th Feb 2010 14:15

combination

of the last 2 posts...write to them keeping it factual and passing on whatever info they asked for but also a call to the partner who would be handling it...

incidentally if there were witnesses to the threat would have no hesitation passing it to the police...

er and finally do you think you may have sufficient suspicion about the guys "reported means" that you should be filing a MLR..?

Perus a nice country I've been told...(only joking)

pembo

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By GarethHughesFCCA
12th Feb 2010 14:16

POCA 2002 (Amendment) Regulations 2007

Forgive me if I am wrong, and perhaps this is one for David Winch, but I understood that if you have made an SAR or have an unreported suspicion, then you are able inform the incoming advisor.

This is an exclusion to S333(1) to encourage the exchange of information between different professionals and entities to combat money laundering.

You have me wondering now, seeing as ACCA have advised the above. Was this pre Dec 2007?

 

Gareth Hughes

The Hughes Partnership

 

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By User deleted
12th Feb 2010 14:46

ACCA advice

The ACCA's advice was given in December 2009.

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By GarethHughesFCCA
12th Feb 2010 15:29

ACCA Technical Factsheet 145

Permitted disclosures between institutions (s333C): ....relevant professional adviser does not commit an offence if he makes a disclosure to another person.......of the same professional standing as himself.............where the disclosure relates to the same client or former client of both advisers and......is only made for the purpose of preventing a money laundering offence.....This means that eg, an accountant may only disclose to another accountant, and not to a lawyer or another kind of relevant professional adviser.

Looks like a fine line.

 

Gareth Hughes

The Hughes Partnership

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By nobbie
12th Feb 2010 17:35

I take it

you have already submitted ML reports?   If not, you have created problem for yourself.  Either  (i) you continue non-reporting, which sounds 99.999% to be an offence under the info you supply about vat report suppression  or  (ii)  you report now, and stand exposed to sour gapes.

"Professional clearance" went out the window yonks ago in terms of being "clearance" - the incoming firm does not need your clearance.

I would phone the firm and ensure they know the score (it will not of necessity put them off ;  they may feel they can deal with the lovely client better than you.  That's their lookout).  Your written response should be factual about other matters, not refer to this issue other than referring to the phone call (and you should retain a careful note of the phone call - but be mindful of any ML reporting implications, and whether it gets you into trouble if you have previously failed to report).

An open a bottle of bubbly.  To celebrate getting shot of such a client.

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By User deleted
13th Feb 2010 12:30

.

As a matter of course, if they have not called you, I would call the incoming accountant and give them a polite verbal warning.

 

 

 

 

 

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By User deleted
15th Feb 2010 15:04

Phone

I had this with a client where he attacked two members of staff and then a partner!

 

We wrote to him and sacked him and dealt with legal aspects e.g injunction.

 

We were told by ICAEW Ethics  Team to phone new accountant and then put note of covnersation on file.

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