Money laundering can be defined as the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities.
Such activities might include drug trafficking, terrorism, theft, fraud, and tax evasion.
The proceeds of any crime will come within the scope of the regulations if funds are laundered and detected here, irrespective of where in the world the criminal activity took place.
It is an offence to provide assistance to a criminal to obtain, conceal, retain, or invest funds if an individual knows or suspects that such funds are the product of a criminal activity.
The specific obligations placed on firms include the following:

• Putting into place systems, controls, and procedures to ensure that the firm is not used for money laundering purposes.
• The appointment of a Money Laundering Reporting Officer (although the responsibility for having appropriate systems in place to prevent and detect money laundering rests collectively with the firm’s partners. They cannot claim that the responsibility for compliance with the money laundering regulations rests solely with the nominated individual.)
• Establishing/enhancing the record-keeping systems for all transactions and for verifying the identity of clients.
• Establishing suspicion reporting procedures within the firm.
• Training and educating staff so that they are fully aware of the extent of their obligations.
• ICAWA members are required by law to make disclosure to the Financial Intelligence Centre within 24 hours where an MLRO considers there to be reasonable suspicion of money laundering (Anti-Money Laundering Act 2020).
  The Financial Intelligence Centre will check to see if practitioners have understood their obligations by asking a series of questions at visits.
  In addition to any disciplinary action which may be taken by the Financial Intelligence Centre, penalties for not complying with money laundering obligations can render a firm liable to fines or possible imprisonment.
  The accountant’s normal professional duty of confidentiality to clients is not an adequate defence where money laundering is concerned unless there is a legal privilege (rare).
  In the case of reporting suspicions of money laundering, practitioners will be afforded statutory protection against claims for breach of confidence where reports are made in good faith and to the appropriate authority. This will be so even where suspicions later prove to be groundless.