National Risk Assessment Of Money Laundering and Terrorist Financing 2020 report appears to have been issued to Parliament in December 2020 under regulation 16 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Accountancy Services: National Risk Assessment Of Money Laundering
The report said that accountancy services were a high risk area for Money Laundering but low risk for Terrorist financing.
Many of the mainstream accounting service areas were referred to such as accounting, auditing, insolvency and taxation services.
The high risk areas were said to be company formation and termination, mainstream accounting and payroll. Registered office and nominee directorship services were highlighted.
In mainstream accounting, false accounting was considered a high risk of money laundering and this can be inadvertently facilitated by say bookkeepers and auditors can add legitimacy to accounts.
Tax advice was highlighted as to the risk of fund claimed or undeclared.
Company liquidation and insolvency services were considered a risk which was capable of masking the trail of monies laundered but it was said that regulatory guidance and supervision goes someway to mitigate this risk.
It was highlighted that client accounts might be used to move large amounts of criminal funds.
Transparency of beneficial ownership was identified as a key issue in the UK to keep in mind for accountancy service providers.
It appears that there is a need to respond to changing risks and demonstrate how this has been addressesd.
Disclaimer: National Risk Assessment Of Money Laundering
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