New Money Laundering Regulations

The New Money Laundering Regulations (NMLR) coming into force on 15 December 2007 require all persons carrying on business in the United Kingdom as an auditor, external accountant, insolvency practitioner or tax adviser to be supervised by an appropriate body.

An “external accountant” is defined as someone who provides “accountancy services” by way of business. The term 'accountancy services' is not defined in the Regulations. The CCAB Anti-Money Laundering Guidance issued in December 2007 states that “for the purposes of this Guidance, “accountancy services” includes any service provided under a contract for services (i.e., not a contract of employment) which pertains to the recording, review, analysis, calculation or reporting of financial information.”

It is therefore the view of CA that under the new Regulations:ACCA members holding a practising certificate whose firms are regulated by ACCA will continue to be supervised by ACCA under the new Money Laundering Regulations (NMLR)

Letters of Engagement

Our Letters of Engagement are therefore updated to reflect the new Money Laundering Regulations as follows:

"Money Laundering Regulations 2007

 In accordance with the Proceeds of Crime Act 2002 and Money Laundering Regulations 2007 you agree to waive your right to confidentiality to the extent of any report made, document provided or information disclosed to the Serious Organised Crime Agency (SOCA).

You also acknowledge that we are required to report directly to SOCA without prior reference to you or your representatives if during the course of undertaking any assignment the person undertaking the role of Money Laundering Reporting Officer becomes suspicious of money laundering. As a specific requirement of the Money Laundering Regulations we may require you to produce evidence of identity of the company and its owners and managers.  This will include for the business proof of registration and address and for the individuals proof of identity and address.  Copies of such records will be maintained by us for a period of at least five years after we cease to act for the business."