How many times have you been asked to prove your identity when opening new accounts or investments? Probably a few times.
The anti money laundering regulations have been in place since 1993 and are regularly updated to try and combat financial crime in the UK.
As Independent Financial Advisers we have to ask all potential clients to prove their identity if they are looking to transact business with us. Producing original documents for a financial adviser to take away with them can be a daunting prospect but equally so can not complying with the rules.
Over the last few years, anti money laundering legislation in the financial services industry has become more stringent and now advisers could face prison. Until recently, the only prisonable offence under money laundering regulations was in respect of laundering relating to drugs and terrorism. From the summer next year the Proceeds of Crime Act will take effect and introduce prison sentences for handling the profits of any illegal activities. This could mean a stretch for advisers if they fail to report any suspected evidence of money laundering.
Financial advisers behind bars? A pleasing thought for some perhaps!