Does the Italian Tax Amnesty create problems for UK MLROs? Part I

Here is an interesting conundrum re Suspicious Activity Reporting (SAR) and the 3rd EU AML Directive. The highlighted Bloomberg article outlines the confluence of a Tax Amnesty, Money Laundering, Tax Evasion, the bank induced recession and the law of unintended consequences.

This proposed Tax Amnesty law was approved by the Italian Government on 2nd October 2009 (see BBC article: http://news.bbc.co.uk/1/hi/world/europe/8288185.stm) and it poses an interesting challenge to UK AML regulated MLRO’s and firms.

Here is a hypothetical question for you which may highlight why. An existing client, probably with an Italian connection, wants to repatriate funds / financially convertible assets to Italy. Your routine monitoring of transactions illicits an admission that your client wants to take advantage of the announced amnesty. Under UK AML regulation and law, where does that leave you and your personal reporting obligation?

Well I’ve got a view (it’s Part II ) but I’d love to hear what you would do and why?

UK & Singapore increase the pressure on tax evaders

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It still comes as a surprise to some that the UK has, since 1993, included tax evasion as a notifiable offence under its anti-money laundering regime. Which, for students of history, was a Conservative Government decision (Ken Clarke, if my memory serves me correctly).

Now followers of the dark art of money laundering will know that placing the proceeds of crime and or transferring them through offshore financial centres / international transactions is an essentai step in the layering process. So Sept 1st 2009 was a bad day for those people as the Singapore and UK Govt. announced an agreement to improve information sharing between the two countries. Our friends at the Association of International Accountants have pointed out that in March 2009, Singapore endorsed the new internationally agreed Standard for the exchange of information for tax purposes. It'll take some time for the details to be thrashed out, but times continue to change.