Category: General News & Cases

Lastest news concerning AML from press releases and publications

  • 26.04.11 Thousands of UK passports ‘thrown out with rubbish’

    UK Passport
    UK Passport

    Some 10,000 passports a year are probably thrown in bins, says the UK’s Identity and Passport Service (IPS).  Launching a campaign urging people to keep passports safe, it warns the same number are lost in bars and clubs.

    The IPS said it had had reports of passports being stolen at gunpoint in Brazil, lost in jail, and left in the pocket of a coat donated to a tramp.

    The IPS based its findings on analysis of applications for replacement passports, which cost £77.50.

    Men replace more than 162,500 lost and stolen passports a year compared with about 112,000 by women, the IPS says. Of all the lost and stolen passports in the UK, people in their 20s were responsible for 42.8% of the total – more than twice as many as the next nearest age group. 

    Lost and stolen by age

    • Teenagers – 6.3%
    • 20s – 42.8%
    • 30s – 20.8%
    • 40s – 12.8%
    • 50s – 10.2%
    • 60s – 5.3%
    • 70s – 1.6%
    • 80s – 0.2%

    Those in their 30s lost 20.8% followed by people in their 40s, who lost 12.8%.

    IPS chief executive Sarah Rapson warned that passports were becoming increasingly attractive to criminal gangs wanting to steal identities.

    She said: “It’s really important that you keep it safe both when you are at home and when you’re abroad. “Remember to put your passport away after use. Don’t leave it in a trouser or shirt pocket in the laundry pile.”

    Some of the colourful reasons given for why people were parted from their passports include:

    • Taxi attacked by gunman on way to airport in Brazil
    • Fell out of bag while snowboarding
    • Drunk boyfriend (now ex) destroyed it
    • Last seen in pocket of a coat donated to tramp
    • Wallet stolen at children’s party with passport inside
    • Passports stored in safe in Turkish villa, thieves stole safe
    • Put in bin by infant daughter; and
    • Put on a fire with clothes

    The service advised people to keep their passport in a place they can remember and to only carry it when absolutely necessary.

    It said people should use alternatives if they needed to prove their age and should keep a note of the number to help speed up the issuing of replacements.

  • 11.02.11 An accountant has been found guilty of tipping off a client under PoCA

    An Accountant has been warned he will go to jail after being found guilty of tipping off a client about a police investigation.

    The stark message to Kishor Doshi, director of Sunderland firm Otax, came after he was convicted of an offence under the Proceeds of Crime Act.

    The jury of eight women and four men at Newcastle Crown Court took just 30 minutes to reach their verdict, after hearing two days of evidence.
    Doshi, of Dunelm South, Sunderland, admitted he rang and told a client that his office had received a police order commanding him to hand over the man’s accounts just hours after he discovered it.

    The order relates to a money laundering investigation by Northumbria Police’s Economic Crime Unit, called Operation Galapagos, into the dealings of the man who cannot be named because of a court ruling.

    But the 60-year-old told the hearing at Newcastle’s Moot Hall that he did not know the document, called a Production Order and authorised by a judge, related to a criminal investigation and was supposed to be kept secret by law.

    Instead, he thought it was part of an ongoing civil inquiry by Revenue and Customs officials and said in interview: “I thought he had a right to know”.

    Earlier in the case, the Tanzanian-born businessman, who has been an accountant for 23 years, told the court he only read the first two paragraphs of the Production Order before he made the first in a series of phone calls between him, his client and an associate.
    But prosecutor Peter Gair said an accountant of Doshi’s experience would have known a Production Order was a criminal investigation led by police.

    Mr Recorder Kershaw adjourned sentencing until next month while reports are prepared.
    But he warned Doshi: “I am going to grant you unconditional bail in the mean time, but you must brace yourself for an immediate custodial sentence.”

  • 29.01.11 Pilot scheme to give law enforcement agencies access to MSB register

    A new scheme is being piloted to give police and other law enforcement agencies access to information held on HMRC’s Money Service Business (MSBs) register. Under the scheme each month agencies will be given details of all Money Service Businesses in their area held on the MSB register.

    The register is a useful tool for sharing intelligence about businesses which might be used for money laundering and will help HMRC with its work ensuring compliance and supervision of the Money Laundering Regulations. In particular, it will help law enforcement agencies differentiate between MSBs complicit in money laundering or terrorist financing and those who are complying with the Regulations. In a recent case, for example, the manager of a bureau de change was found to be involved in laundering millions of pounds made from drug trafficking.

    If the pilot is successful access to the register will given to law enforcement agencies across the country.

  • 20.01.11 UK identity cards can no longer be used to confirm identity under MLR

    Under the Money Laundering Regulations businesses need to carry out customer due diligence on their customers. This involves asking to see documentary evidence of a customer’s identity.

    Since November 2008 the UK Borders Agency (UKBA) has issued an ID card to migrants from countries outside the European Economic Area (EEA). From 21 January 2011 this form of identity will no longer be valid. If you are carrying out customer due diligence on or after that date you should not accept an ID card issued by the UKBA as proof of identity under the Money Laundering Regulations.

    Acceptable forms of documents, data or information will still include passports and photographic driving licences, as well as a range of other paper based evidence, as well as electonic verification reports

  • 30.11.10 Accountant fined £1,080 for a failure to verify a client

    The ICAEW has made the following regulatory decision in a case for a failure to verify a client in accordance with the Money Laundering Regulations.

    Consent Orders made on 1 June 2010

    With the agreement of Andrew Nigel Hamilton of 38 Dean Park Mews, Edinburgh EH4
    1ED, the Investigation Committee made an order that the member be severely
    reprimanded, fined £2,000 and pay costs of £1,080 with respect to a complaint that:

    In February 2007, Mr A N Hamilton FCA acted for X on behalf of his firm, Y, when he
    had failed to verify her identity or keep records of the evidence obtained, contrary to
    section 18 of the anti-money laundering ‘Second Interim Guidance for Accountants’
    D6448

  • 30.11.10 Accountant fined £5,000 for a failure to report

    The ICAEW made the following regulatory decision in the following case for a failure to make a suspicious activity report in a timely basis

    Consent Orders made on 28 July 2010

    With the agreement of Michael Martin Shenker of 5Wellesley Court, Apsley Way,
    London NW2 7HF, the Investigation Committee made an order that the member be
    severely reprimanded, fined £5,000 and pay costs of £2,075 with respect to a
    complaint that:

    Between 7 June 2005 and 16 February 2006 Mr M M Shenker FCA failed to comply with
    statement 1.304 of the Members Handbook in that he failed to make a suspicious activity
    report on a timely basis to the National Crime Intelligence Service when he had a
    suspicion or reasonable grounds to suspect that Mr X’s activities in relation to the
    business of Y Limited were unlawful. D6496

  • 07.09.10 HMRC Guidance – Pakistan floods disaster – guidance on transmitting money

    The Government recognises the crucial importance of individual giving and charitable donations at times of humanitarian crisis such as the Pakistan floods and therefore understands and values people’s desire to give money. This underlines the importance of knowing that money sent with best intentions is not inadvertently finding its way into the wrong hands.

    The normal risk based approach and customer due diligence measures must be applied by money transmitters when an individual is sending their own money to either family members or to a relief organisation in Pakistan.

    If money collected by a charity or religious organisation is being sent we recommend that you do the following.

    • Check the identity of the person arranging to send the money.
    • Obtain the name and address of the charity or religious body.
    • Check on the Charity Commission website (Opens new window) to confirm the organisation is a registered charity and obtain confirmation that the person is a genuine representative of the charity or religious organisation. Many of the charitable and religious organisations with links to Pakistan are registered with the Charity Commission.

    If the organisation is not on the register you may still undertake the transaction but you should make further enquiries to satisfy yourself that the money being transmitted is not terrorist financing or the proceeds of crime.

    The further enquiries could include questions about how the money was collected and enquiring about who it is being sent to. If after making further enquiries you are not satisfied that this is genuine you should consider making a suspicious activity report to the Serious Organised Crime Agency.

  • 02.07.10 Chartered accountant faces eight years behind bars

    A London Chartered accountant faces eight years behind bars after being convicted of manipulating both his clients’ and his own tax returns, pocketing £11m in income tax and VAT payments.

    Christos Charalambous (58) of Palmers Green, London, completed over 6,000 self assessment tax returns for clients which included fictitious expenses claims in order to increase the tax repayments due. He also understated the income he received from client fees on his personal returns and failed to register, declare and pay VAT due on his accountancy firm Charltons. Many of Charalambous’ clients were from other EU countries and had little understanding of the UK tax system.

    The court heard how Charalambous would submit tax returns for his clients to the Inland Revenue (IR) (up to April 2005) and HMRC (from April 2005) without showing his clients what information he was including. He would then receive the repayments from IR/HMRC, deduct a minimum of 15% fee and repay the remainder to his clients, who would not question the amount refunded as they trusted him to complete the returns correctly. The total amount of repayment claimed by Charalambous on his clients’ behalf was £11,222,472.

    Between 1997/98 and 2004/05, he understated client fee income on his own self assessment tax returns by £807,406. He also failed to declare and pay £180,082 VAT due to HMRC.

    He was found guilty on six counts of cheating the public purse at Blackfriars Crown Court following a trial that lasted seven weeks.

    On passing sentence, His Honour Judge Richardson said: “The offences are more serious as you were a chartered accountant. HMRC ought to be able to trust you as should your clients. You exposed them to the dishonesty that you practice. With tax enquiries, you responded with evasion and lies.”

    “Charalambous is a thoroughly dishonest accountant who was motivated by greed. He betrayed the trust of innocent and vulnerable people to feed that greed. This deprived the nation’s public services of millions of pounds. Our aim is to pursue and prosecute those involved in this type of criminal activity and reclaim the proceeds of their crime,“ said Steve Armitt, assistant director of criminal investigation for HMRC.

    A Confiscation Order is being pursued.

  • 22 April 2010 SOCA announce one of six most wanted arrested in Amsterdam

    One of six most wanted arrested in Amsterdam

    The new Dutch Crimestoppers operation saw the arrest of its first target yesterday.

    James Vincent Muldoon, 30, of Liverpool, absconded from his trial for armed robbery in 2007 and was sentenced in his absence to 13 years in prison.

    He was believed to be on the run in the Netherlands and became one of six men on the ‘most wanted’ list when SOCA, Crimestoppers UK, BelM (Dutch Crimestoppers), Amsterdam Police and the Amsterdam office of the Public Prosecution Office launched Operation Return in March.

    This joint initiative aims to prevent UK fugitives hiding from the law in Amsterdam. A similar Crimestoppers campaign in Spain – Operation Captura – has successfully led to the return of 31 of the 50 most wanted fugitives hiding out on the Spanish Costas. Some of the criminals wanted there are thought to have moved on to Amsterdam because the campaign in Spain made life too uncomfortable for them.

    Muldoon was arrested on 21 April at a house in Amstelveen. He is now in custody and will appear before a Dutch court in the near future in relation to his extradition to the UK.

  • 08.04.10 Crime proceeds spent on Wigan allotment project

    Thousands of pounds confiscated from criminals have been donated to an allotment project in Greater Manchester.

    Norley Hall allotments in Wigan has been given £5,000, which was raised through the police’s payback scheme.
    Under the scheme, money raised by criminals is given to the community.

    The allotment was set up to encourage youngsters who had been involved in anti-social and criminal behaviour to give something back to their community.

    The young people will use the area to grow flowers and plants which will be given to local victims of crime, police said.
    Insp Phil James, of Greater Manchester Police, said the scheme, which is in its first year, had led to a reduction in anti-social behaviour and criminal damage in the area.