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CASH BEING BANKED IN PERSONAL ACCOUNT

  • Associate
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  • # 117216

Hi   I have just been asked to complete the books for two young gentlemen who have recently started a limited company.  Currently services are paid by card and cash.  The cash at the end of the day is taken home and banked in a personal bank account and then transferred over to the business bank account.   

 

Please can some one tell me if this is considered money laundering?  or any implications on this?

 

Thanks

  • Fellow PM.Dip
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  • # 117218

Woody said:

Hi   I have just been asked to complete the books for two young gentlemen who have recently started a limited company.  Currently services are paid by card and cash.  The cash at the end of the day is taken home and banked in a personal bank account and then transferred over to the business bank account.   

 

Please can some one tell me if this is considered money laundering?  or any implications on this?

 

Thanks


This is not necessarily money laundering issue.

I am assuming they are both honest Joe's Wink

It could be that the Business Bank (which may be different to their personal bank) may not have a branch nearby to deposit the cash, where as the personal bank has a branch nearby for cash deposit. In which case it would be perfectly normal to deposit cash in personal bank and transfer to business bank online.

What you will need to do in order to put your mind to rest is to tell the client to show you both bank account statements and confirm matching transfers between the personal and business bank accounts with respect to Cash Deposit.

As long as there is an identifiable money trail, there should be no AML issues.

Hope that helps

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