The purpose of Money Laundering is verifying the identity of the person you are doing business with. If a company does not have sufficient information about a client, that person may be able to launder money or partake in other corrupt activities without any red flags being raised.
It can sometimes be inconvenient to check your clients. However, those that understand why this needs to be done and ultimately have nothing to hide will cooperate. It is always helpful to explain that you are adhering to the Money Laundering Regulations, something out of your control.
HMRC has published a list of businesses that have not met their obligations under the Money Laundering Regulations.
As a supervisor of the Money Laundering Regulations, HMRC has a duty to publish details of businesses that have been penalised for not complying with the regulations.
HMRC advises that it considers cases individually to decide whether to publish details in full, anonymously, or not at all. Where a decision is made to publish in full, the following information may be published:
- the name and address of the business owner or business
- the nature of the breach or breaches
- the penalty issued by HMRC
- the status of any appeal against the penalty
HMRC publishes anonymously if it considers that the effect of publishing details about an individual or business would be disproportionate.
Know the Money Laundering Regulations so you do not get caught out.