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Money laundering
2 October 2001
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Money-laundering has been in the news
recently and tragic events in the USA will ensure the story
continues to run Now, I don't want to get into any arguments about whether the existing laws are too lax or whether they infringe our civil liberties or human rights. I feel there can be no argument that all professionals dealing with finances should act to minimise the risk of money-laundering In my travels I've seen extremes of money-laundering awareness. In one practice, the new-client procedure includes the completion of an 11-page form. No work may be done on the client until the 'money-laundering partner' has reviewed and signed the form. This process causes a constant headache, as some of the practice's partners are desperate to charge time bill their clients as soon as possible after engagement. However, the money-laundering rules are adhered to above all others and all partners and staff have been educated to understand the position. In another practice (unfortunately fairly typically) they have no money-laundering procedures at all. They claim most of their new clients are British, so the problem doesn't arise. (I'm not sure whether they perceive money-laundering to be solely an overseas concern, or whether they feel that the integrity of a British person is unquestionable.) They add that, even if they did have money-laundering procedures, they would simply slow down the business and they'd never find the time to complete them anyway. How can there be such a gulf? In order to comply with the requirements of our regulators, insurers, commentators and partners, we have to follow a straightforward linear process. Pragmatic use of a decent practice management or customer relationship management system will ensure that the process may be completed and recorded as quickly and simply as possible. We can then get on with business - from providing the services through to collecting the cash. Talk to Cynare for impartial advice. |
Copyright Cynare Ltd 2002
Last updated 25/06/2003