On 1 March 2004 new Money Laundering Regulations came into force. Money Laundering does not just consist of drug money or terrorist activities but includes dealing with the proceeds of any crime.

All accountants (and other professionals) will be required to file suspicious activity reports on their clients if any money laundering is suspected of having occurred. It is an offence for the firm to let a client know that they have made a report.

There is no minimum level required and all transactions that appear to be suspicious must be reported. This could result in the need for a report if even £1 has been earned and not declared to the taxman or a £1 VAT error noticed and referred to a client has not been put right in a reasonable time.

It is very important to note that errors or mistakes do not constitute criminal conduct, provided that they are correct as soon as possible. If you discover any error or mistake and would like help in sorting it out, please contact us urgently. We can also offer advice on checking that your bookkeeping system is sufficiently reliable or provide you with a new system or method.