RegulationCorporate GovernanceGovernment’s laundering claims unfounded

Government's laundering claims unfounded

Money laundering is not as rife as government suggests

Money laundering is not as rife as the government has claimed, and new
regulations will only increase red tape burden on business, advisers have
warned.

The new rules, which move beyond its original scope to include retailers and
jewellers into reporting customers who could be involved in money laundering,
have been introduced without compelling evidence that it is a problem, reported
the
FT.

‘Money does not appear to be entering the financial system on anything like
the scale that is being talked about,’ said Jackie Harvey, a principal lecturer
for Newcastle Business School at Northumbria University.

Wilkins Kennedy partner Steve Golder said businesses could be prosecuted for
failing to report a suspicion of money laundering ,and will have to keep
evidence checks on file for five years.

‘This is a huge red tape obligation and captures an incredibly wide range of
businesses,’ said Golder.

Further reading:

HMRC urges business to ready for
MLRs

CCAB releases revised MLR
guidance

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