Money laundering

[jamesuk28]

Hi, We have a client in China that we are recovering £70,000 for from a UK company. As our client is outside of the UK we usually have the debtor pay us direct, deduct our very reasonable fee, and pass the balance onto the creditor.

However with such a large sum involved and the fact they are in China, do I need to know anything about the money laundering regs?

Any help appreciated

[JustinP1]

I was going to say something funny about washing it through the Caymans first, but I will be serious.

My careful hat on my head tells me that your recovery percentage would be less than a 'traditional' launderer. Would be a very creative way of doing the traditional job in a way which may not ring the usual bells.. Probably is legit. You are right to cover your arse though just in case.

[jamesuk28]

JustinP1 said:

I was going to say something funny about washing it through the Caymans first, but I will be serious.

My careful hat on my head tells me that your recovery percentage would be less than a 'traditional' launderer. Would be a very creative way of doing the traditional job in a way which may not ring the usual bells.. Probably is legit. You are right to cover your arse though just in case.

On a job this size we charge 6%.

Was thinking that myself, a very creative way to launder dirty money if I was that way inclined. Might be a nice little earner.

[lambogenie]

Money laundering regs just have to state you need evidence of where the money originated from, so if its a private individual usually a passport or other official document, in the event of company transfers just the companys registration details (name, incorporation number) and registered office address will suffice. We do a lot of foreign trade and as long as you arent getting 100,000 grand off the king of nigerias nephew via western union then you should be covered, if its being done by a BACS or CHAPS transfer then the banks existing anti-money laundering regulations should give you sufficient coverage since they cannot accept transfers over the regs that aren't verified at source.

Just keep a record of who the money came from, and who the money is going to and you should be compliant.

unless the money is being paid to islamic fundamentalists in return for terrorist activity in china in which case your obviously fooked.

[jamesuk28]

Thanks for that. The debtor is a scap metal dealer, who from experience tend to be a bit dodgy, hopefully he wont turn up with £70k in twenties.

[cannedheat]

jamesuk28 said:

Thanks for that. The debtor is a scap metal dealer, who from experience tend to be a bit dodgy, hopefully he wont turn up with £70k in twenties.

I know a dodgy scap metal dealer Someone at our company paid him a grand too much in cash and the bugger wont give it back. Still, we make ~£12bn a year profit so I'm sure we can live with it...