Money laundering regulations

milleniumaire

Over the years, my Limited Company has invested in around 17 different manged funds.  I have recently started receiving "Money laundering" forms to be completed, with the latest being from AXA Investment Managers and also on behalf of AXA, from a company called BNP PARIBAS Asset Management, who I have never heard of!

19 years ago, in May 2006, my company investment £40k into some AXA funds and they are only now asking for these details.

I understand legislation changes, but it is the way these investment company's ask for this additional information.

The forms they supply are usually generic and difficult to understand as they address every type of company ever considered.  They don't supply a stamped addressed envelope.  They threaten to prevent me accessing my funds if I don't complete the forms and they want me to provide certified documents, which are certified by individuals that I would need to pay!

So, potentially, for each of the 17 investment companies, not only will it cost me time and effort, I will also have to pay for the privilege of sending the information THEY need!

All the information they ask for is available on Companies House, so why can't they get off their backsides and collect it themselves?

Does anyone else find this gaulling?

flaneurs_lobster

Could not your Limited Company's accountant be employed to provide this information? It's required, legally, just like your tax or VAT returns.

ColdIron

milleniumaire said:

Does anyone else find this gaulling?

I see what you did there

BNPP are a large French bank so you didn't say galling. Bravo 

masonic

This is a consumer forum, so the likelihood is that you'll hear from people who've been asked for evidence for source of personal funds, which there have been a few threads about recently, suggesting new standards are in the process of being rolled out. It's been mentioned that investment firms were prioritised for this, but some smaller banks and building societies have been asking for similar in the last few weeks.

You'll find with investment firms, they use a legally separated entity as custodian and they will have the requirement to ensure compliance. If Axa did not explain this ahead of the custodian approaching you directly, then that is a bit of a poor show.

The AML legislation requires firms to be able to demonstrate they have verified data against the original source, so even if they did use companies house in your case, they would still need to have certified copies of supporting original documentation on file. Original documents are often accepted in place of pre-certified copies. If your accounts are audited, would the auditor sign-off not suffice?

mills112

it is certainly a complete nightmare if they start doing this as it would be difficult to dig back so far!  it looks like they are targeting companies more than individuals as that is where the vast majority of money laundering will take place as criminal gangs won't use one individual to do it, not the big criminals anyway.

as a company you will have audited accounts, or your should have, and so it will be easy for you send that to them.  yeah, it is a right pain and even if you don't have anything to hide, like i don't, it is still unnerving when you are asked to demonstrate where you got all your money from, as you feel like you are being interrogated.

they can't rely on their search of companies house documentation as that could be a different company and it may not be complete or up to date.

LHW99

mills112 said:

it is certainly a complete nightmare if they start doing this as it would be difficult to dig back so far!  it looks like they are targeting companies more than individuals as that is where the vast majority of money laundering will take place as criminal gangs won't use one individual to do it, not the big criminals anyway.

as a company you will have audited accounts, or your should have, and so it will be easy for you send that to them.  yeah, it is a right pain and even if you don't have anything to hide, like i don't, it is still unnerving when you are asked to demonstrate where you got all your money from, as you feel like you are being interrogated.

they can't rely on their search of companies house documentation as that could be a different company and it may not be complete or up to date.

Auditing depends on the company type and size. See

https://www.gov.uk/audit-exemptions-for-private-limited-companies

From experience, if your company is exempt from regular auditing it is fairly costly to get a one-off done

dunstonh

 I have recently started receiving "Money laundering" forms to be completed

This is to be expected.  Banks have been doing the same on current accounts and deposits too.

So, potentially, for each of the 17 investment companies, not only will it cost me time and effort, I will also have to pay for the privilege of sending the information THEY need!

Sounds like you are using a very old fashioned way of investing.   The provider needs to do the check. This indicates you have 17 providers.   Whereas modern investing you would have one provider who is whole of market.

All the information they ask for is available on Companies House, so why can't they get off their backsides and collect it themselves?

Why can't you get off your backside and do what they ask?
And in many scenarios, Companies House doesn't provide all the information, and it can be used fraudulently.

Does anyone else find this gaulling?

No.   It was about 5-10 minutes work.

mills112

LHW99 said:

mills112 said:

it is certainly a complete nightmare if they start doing this as it would be difficult to dig back so far!  it looks like they are targeting companies more than individuals as that is where the vast majority of money laundering will take place as criminal gangs won't use one individual to do it, not the big criminals anyway.

as a company you will have audited accounts, or your should have, and so it will be easy for you send that to them.  yeah, it is a right pain and even if you don't have anything to hide, like i don't, it is still unnerving when you are asked to demonstrate where you got all your money from, as you feel like you are being interrogated.

they can't rely on their search of companies house documentation as that could be a different company and it may not be complete or up to date.

Auditing depends on the company type and size. See

https://www.gov.uk/audit-exemptions-for-private-limited-companies

From experience, if your company is exempt from regular auditing it is fairly costly to get a one-off done

he says that his company has invested over 17 different investment funds, with 40k in 2006 with AXA.  £40k in 2006 is not an insignificant sum so i doubt his company is going to be a small company as that is just one of the 17 investment funds that he has invested in.