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by
Kitty Pryse-Jones |
You may not be aware, but the legislation concerning
money laundering and the proceeds of crime is changing and
will now apply not just to credit and financial
institutions but will encompass all lawyers and estate
agents as well. The intention is to reduce the
opportunities for criminals to legitimise their activities
by converting their tainted money into legitimate assets,
and this includes buying houses with the cash.
In practical terms, this will mean that the identity of
every client needs to be more thoroughly verified.
Although we have been checking identities for some years
now in order to comply with mortgage lenders'
requirements, the new regulations will mean that we will
have to be even more rigorous.
We will be required to vet our client's identity
carefully at the outset of every transaction before any
work is carried out. If we are unable to verify our
client's identity then we must decline to act. |
We are also required to enquire as to the source of any
money being used by our clients to purchase properties.
We fully understand that the application of these
regulations may offend some people, but we hope that our
clients will appreciate that we have no discretion in this
matter at all. Large amounts of cash cannot be accepted in
any circumstances, because we can never be completely sure
where it has come from. In the vast majority of genuine
cases monies are transferred via the banks on completion,
and these transactions are traceable. There should be no
need to use pound notes!
The new legislation now stipulates that all lawyers
must file a report when they have reasonable grounds to
suspect money laundering. In other words, no actual proof
is required; a mere suspicion that something dubious might
be occurring is enough! These suspicions have to be
reported to the National Criminal Intelligence Service (NCIS),
and in the event that we should fail to make a report, we
will be liable to prosecution, imprisonment and fine.
In addition, we will also be liable to these sanctions
if we tip off a client that we are making contact with
NCIS. Clearly the "powers that be" mean business - so
please be aware! |
