Payroll providers are equipped to support new UK anti-money laundering legislation

PR Log (Press Release) – Aug 14, 2008 – 21 May 2008:  The Institute of Payroll Professionals (IPP), in association with Travelex Global Business Payments (Travelex GBP) has today released research* that shows that an astonishing six out of 10 payroll providers are unaware of the penalties for non-compliance of UK anti-money laundering (AML) legislation. The results also reveal that just two in 10 feel that the new requirements will not negatively impact the performance or profitability of their business. Nearly four out of 10 payroll providers admit they are worried about the new AML regulations.

An obvious trend that emerged from the research illustrates that the payroll - http://www.payrollprofession.org/ provider community does not feel equipped with adequate information about new UK AML laws.  More startling is the fact that the legal consequences of non-compliance have not been made widely-known. In terms of having the infrastructure to deal with adhering to AML regulations, the research shows a lack in resources and confidence within organisations.

When asked about the main challenges for their businesses when having to identify and verify the ultimate ownership of their customers (as outlined by the updated AML rules), payroll providers cite their top three concerns:

•   Obtaining the relevant business documents (55 percent)
•   Having the resources to cope with additional work (51 percent)
•   Lacking the expertise or skills (39 percent)

In response to these concerns, Travelex GBP has partnered up with the IPP in their efforts to educate the payroll provider community and by providing easy access to valuable information on AML legislation.

Comments Karen Thomson, director of policy and research of the IPP: “Although the IPP has and still is desperately seeking answers for the payroll industry, it has been a slow process.  Both HMRC and Treasury are working with us, yet there still seems to be confusion about who is in scope and who isn’t in respect of payroll functions.  We believe that the regulations were originally laid to capture financial transactions that could be open to money laundering activities, but without a true understanding of payroll functions in the UK, many areas are “grey” in respect of payroll.  I look forward to receiving clarification for our industry and hope the questions we have raised are being treated as a matter of urgency.”

Tony Wilson, UK divisional director of Travelex GBP concludes, “Travelex fully supports the introduction of AML regulations. With money laundering estimated to cost Britain’s economy up to £20bn per year, the increased focus brought by the new regulations will help minimise the associated risks. We are aware of the significant role that the payroll provider community have to play in the movement of money within the economy, and therefore decided to team up with the IPP to help provide the necessary information that currently appears to be unavailable.”

For more information on the IPP, please contact:

Rebecca Ribbans/Jo Victoria Russell
3 Monkeys Communications
Tel: 020 7440 2410
E-mail: Rebecca@3-monkeys.co.uk / Jovictoria@3-monkeys.co.uk