CHARTERED accountants are being warned they could face criminal charges if they fail to report suspected money laundering.

New advice on how to recognise and report money laundering has been drawn up by the Institute of Chartered Accountants and is to be sent to all working members to prevent anyone falling foul of the law through ignorance.

The move has been welcomed by the South Eastern Society of Chartered Accountants (SESCA), which represents members across East and West Sussex.

Mark Spofforth, SESCA president, said every chartered accountant needed to be aware of the legal and professional requirements relating to money laundering.

He said: "Accountants have come under particular criticism from the National Criminal Intelligence Service for suspected under-reporting of money laundering.

"This is a criticism SESCA rejects. The law applies to anyone who suspects or gets involved with money laundering and under- reporting could leave accountants open to prosecution.

"The new guidelines will help ensure that no one faces this danger through ignorance." Lawyer John Young, who drew up the guidance, said it was designed to help accountants interpret and apply the law, particularly in difficult areas like tax evasion.

He said: "The law makes no distinction between this and other serious crimes.

"Accountants assisting a client to launder proceeds in this area will themselves commit an offence.

"Every firm should have at least one person with a thorough knowledge of the requirements set out in the new guidelines and every accountant needs to have a general idea of them and to be constantly alert for suspicious transactions."

The new guidance will be sent out early next year.

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