New legislation will take effect from the 1^st March 2004, concerning the reporting of Money Laundering. The public perception that money laundering involves only drug or terrorist funds is far from accurate.

The Money Laundering Regulations 2003 and the Proceeds of Crime Act (POCA) 2002 will require reporting by professional advisors, on all criminal property (which covers the proceeds of any crime including tax evasion) and there is no lower limit on the amount involved. The persons covered by the legislation include solicitors, investment brokers, estate agents and accountants (qualified or otherwise) and any person acting as a tax agent.

Fitzpatrick & Kearney together with representatives of local Chartered Accountants' firms practising in Newry held a meeting on 28^th November 2003 to discuss the implications of this legislation.

Those present at the meeting formed the opinion that there was a public misconception as to what construed money laundering, and that the public were unaware (to date) of the reporting requirements that will be imposed on advisors.

When this legislation comes into force, advisors will be required to make confidential reports to the National Criminal Intelligence Service (NCIS) where they have knowledge or suspicion that a client has committed a money laundering offence. Further the legislation makes it a criminal offence for the advisor to inform his client that he has been, or will be so reported.

Under the new legislation the advisor cannot avoid his reporting duties by simply resigning, and indeed must seek permission from NCIS to resign from any assignment.