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FSA in move to stamp out money launderers

The FSA has set out its strategy for IFAs in the fight against money


In its new role, required by the Financial Services and Markets Bill, the

regulator will have the power to institute criminal proceedings for

breaches of the money laundering regulations of 1993.

The rules include ensuring the names and addresses of new customers are

known, keeping records, watching out for big or increasingly regular

transactions and reporting any suspicions of money laundering to the


The FSA says London&#39s reputation as a big financial centre attracts

criminals who want to plough their ill-gotten gains back into the bank ing


The FSA is inviting responses from the industry. It expects firms whose

systems are already at “acceptable levels” to be able to comply easily with

the proposed rules.

Managing director of authorisation, enforcement and consumer relations

Phillip Thorpe says: “The publication of these draft rules is an important

step for the FSA towards reducing financial crime.

“The proposed rules are sensible and pragmatic and their implementation should neither exclude anyone nor overburden the industry.”

Investment IFA Best Investment is angry with Legal & General for

requesting money- laundering certificates for Pep transfers of over £9,000.

It says these transfers do not form new money being inv ested, just a

transfer of an existing investment that had clearly complied with the

legislation at the time the purchase was made.

Best Investment says the only reason a Pep could be worth more than £9,000

is legitimate growth in the value of an already compliant plan.

Deputy managing director Jason Hollands says: “The legislation is designed

to frustrate drug traffickers and other criminals attempting to feed their

ill-gained profits into the legitimate financial system by placing a system

of checks on investment applications in excess of £9,000 which are not

drawn from a UK bank account.”


Aberdeen doubles pre-tax profits

Aberdeen Asset Management has posted doubled pre-tax profits of £13.4m for the first quarter of 2000. The increase from last year&#39s mark of £6.7m will likely garner the fund manager a much coveted top 10 spot in the Association of Unit Trusts and Investment Funds monthly figures.It is currently ranked the 13th largest fund manager […]

12% slice of the loan market for Abbey

Abbey National is fighting back in the face of aggressive action by otherlenders by doubling its mortgage market share to 12 per cent in the firstquarter of this year.Traditional lenders have recently lost market share to new entrants butAbbey has reversed this trend.Abbey says its dramatically increased share is due to an aggressivepricing policy coupled […]

FSA passes onus for trees on to providers

The FSA is being accused of reneging its responsibilities over stakeholderdecision trees by leaving pension companies to make the final decision.Providers believe the regulator is preparing to pass the buck by leavinglife offices to address issues such as the minimum income guarantee andcontracting out of Serps.FSA officials have privately voiced concerns over how decision trees […]

FSA forcing us to defraud clients

No one can argue with Philip Robinson (Money Marketing, April 6). Clearly,the Trea sury makes all the decisions about regulation.However, since July 1, 1994, we have been led to believe that the PIA (nowthe FSA) are the only advisers to the Treasury.They also have virtually unlimited powers to take any action which theGovernment would sanction.Mr […]


Out from the long grass? An IT and NI merger

Those with a long memory will recall that at the start of the last parliamentary term George Osborne announced his intention to merge income tax (IT) and national insurance (NI).  Headline grabbing as the initiative was, the reality of the complexities, challenges and costs of such a move resulted in this idea being kicked into the political long grass.


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