Assessing risk for money laundering purposes_ part 1 _ icaew

The Money Laundering Regulations require a risk-based approach. Money laundering attorney What does this mean in practice? In this first of a series of four articles we set out the four types of risk assessment and examine one of them. Anti money laundering test questions The others will be considered in the rest of the series.


• Risks arising from the potential of new clients being involved in money laundering or terrorist financing. How to get away with money laundering This will determine the level of initial customer due diligence work undertaken

It is highly unlikely that a high street practice in a small market town will come across clients or business contacts involved in terrorist financing. International standard for combating money laundering activities Conversely, at least one of the practice’s clients is likely to be evading tax to some extent. First stage of money laundering Your policies and procedures should ensure that staff are aware of what sort of money laundering activities they are likely to encounter.

Tax evasion is probably top of the list for most practices, but you may also encounter fraud and theft on occasion. Anti money laundering meaning in hindi As well as the more obvious instances of theft and fraud, you may come across others such as:

• clients deliberately keeping quiet about overpayments by their customers in the hope that the customer doesn’t spot it (potentially this is theft)

• clients falsifying accounting information in order to obtain finance from a bank or mortgage company (potentially this is fraud by false representation)

• clients such as solicitors or surveyors “borrowing” their own clients’ money for their own purposes (potentially this is fraud by abuse of position)

• clients not disclosing information where required. Latest news on money laundering Examples might include not disclosing information to an insurance company when applying for insurance or an agent not disclosing a commission to his principal (both are potentially fraud by failure to disclose).

While tax evasion, theft and fraud are the most likely forms of money laundering you will encounter, you should ensure that staff are alert to the other types of potential money laundering activities as well. Money laundering facts Every year a number of accountants are visited by the police with production orders seeking information about a client that the police suspect is involved in serious criminal activity.

Another aspect of a firm’s practice-wide risk assessment may stem from the nature of the client base. Money laundering nigeria For example, many firms have clients with geographical connections with other countries. Money laundering defined While normally this would affect the individual client’s risk assessment, if a firm has many clients from a particular country or region this may impact on the firm-wide assessment.

The Financial Action Task Force (FATF) monitors the effectiveness of the anti-money laundering regimes in countries across the world. Money laundering for dummies On 16 February 2012, FATF updated its list of non-cooperating countries and those with weak controls.

In the latest statement North Korea and Iran are cited as the two countries posing the most significant risks of money laundering and terrorist financing. Money laundering meaning in hindi Other countries that have yet to make sufficient progress to counter the threat of money laundering and terrorist financing are: Bolivia, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Myanmar (Burma), Nigeria, Pakistan, São Tomé and Príncipe, Sri Lanka, Syria, Tanzania, Thailand, and Turkey. Money laundering statute Ecuador the Philippines, Vietnam and Yemen have agreed an action plan to improve but have not yet made sufficient progress.