UnfairworkAustralia.com.au is dedicated to fighting for the entitlements of contractors.
These entitlements include annual and long service leave and employer superannuation contributions.
The recent Federal Court decision in the case of Moffet v Dental Corporation Pty Ltd held that notwithstanding the classification of Dr Moffet as being an independent contractor that he was entitled to employer superannuation contributions as he was engaged under a contract for the supply of labour.
Contact UnfairworkAustralia.com.au for assistance.
Anti money laundering policies in the United Kingdom
The UK and NZ Governments have introduced money laundering regulations which apply to business sectors including those of accountants, real estate agents and solicitors.
These regulations have not yet been introduced in Australia. However, the Federal Opposition treasurer has recently announced intentions to enact this legislation.
Pertinant anti money laundering policies
Those businesses to which the regulations apply are required to implement controls including the following:
Assess the risk of the business being used by criminals to launder money.
Verifying the identity of beneficial owners of companies and partnerships.
Monitoring customers business activities and reporting suspicions.
Appoint a nominated officer.
Verifying customer identification.
The implementation of controls.
Anti money laundering and the Australian property boom
It is arguable that the early implementation of such regulations in Australia may have significantly impacted the property boom.
In this respect what is referred to as politically exposed persons, including politicians, management of state owned corporations, members of armed forces (including family members) may have been restricted in their ability to acquire substantial property interests.
Polemic Forensic’s anti money laundering services include the following:
1. The diagnosis and implementation of controls and risk assessment systems.
2. The investigation of individuals and business entities in relation to sanctions.
3. The conduct of investigations into the sources of wealth.
Present value calculation of needs under the Inheritance (Provision for family and dependents) Act 1975.
The expert was instructed to prepare a report quantifying the needs of two children in their early to mid-teens following the death of their father.
Their father’s estate was substantial; however, there were claims on it from various relatives in addition to his immediate family.
Additionally, there were several pecuniary bequests and a doubtful debt, which needed to be taken into account before arriving at a value of estate to be made available.
The report prepared included a calculation of the children’s educational and maintenance needs to the age of 25 taking into consideration the fact that both children were exceptionally talented in both academic and extra-curricular fields.
There were a number of assumptions such as:
1. The likely school and university fees and the cost of extra-curricular activities to continue fostering the children’s capabilities
2. Future levels of inflation
3. Interest rates and investment returns
The final report took into account two possible means of supporting the children:
1. Using the father’s estate to cover future needs as they arose;
or 2. Investing a sum that would return enough income annually to meet expected future costs
The overall conclusion was that their combined needs amounted to just under £1 million over the next 10 to 12 years.
In April 2004 Brian was offered a job as manager of a public house in Solihull. He had many years experience in the pub trade but had never managed a pub before. He explained to the pub owner that he would need some help with book-keeping. The owner explained a system of record keeping and banking which he had himself devised. When the quarterly VAT return was due in July the owner checked the records and found the there appeared to be a substantial shortfall in the bankings. He complained to the police and Brian was charged with theft of the shortfall and false accounting.
There were many serious deficiencies in the system devised by the pub owner and the difficulties that Brian would have experienced in attempting to operate it.
There were also a number of possible causes of the cash shortfall, other than theft by Brian.
When the case came to court many of these points were put to the prosecution witnesses in cross-examination.
At the close of the prosecution evidence the judge agreed that Brian had no case to answer and he was acquitted.
Ask oneself whether there is a greater risk of one’s office being destroyed by fire or flood or one’s data being seized or corrupted by criminals demanding a ransom fee to restore it. Similarly it is instructive to consider whether most professional firms would find it easier to recover from the loss of its physical premises than to recover from the loss of its computerised data.
It is perhaps no coincidence that professional indemnity underwriters are starting to enquire about the procedures their insured clients have in place to guard against cyber fraud. This increased scrutiny has to be seen in the context of an increasing number of cyber-related claims against professional firms. Despite record numbers of such claims, some predict that we are currently seeing only the tip of a very large ice-berg.
Several conveyancing firms have reportedly received fake emails that appear to come from their clients, often late on a Friday afternoon, providing bank account details into which they instruct that the proceeds from property sales are to be paid. Only after funds have been transferred has it become apparent that the clients’ email accounts had been hacked and the email instructions had, in fact, not been sent by the clients themselves but by criminals masquerading as them.
It is not only lawyers and conveyancers that have been subject to this type of fraud. In these days of outsourcing, firms of accountants too can find themselves targeted as instructions to pay suppliers are sent to them that purport to come from clients but which actually originate from hacked email accounts.
Typically the hacked emails look very convincing and are far-removed from the amateurish missives in poor English that purport to come from African royalty. Falling victim to a scam may just be a matter of bad luck but there are certainly steps that can be put in place to minimise the risk. Not only is it important to take preventative measures but, equally, if a firm faces a claim from a client arising from cyber-fraud, it will be of critical importance in the defence of the claim to be able to demonstrate that the firm had taken all reasonable steps to minimise the risk. Merely putting a disclaimer on the bottom of an email may no longer suffice.
Gambling companies and financial institutions have policies in place in relation to know your client (KYC) and suspicious transactions that their clients may seemingly engage in.
However recent media reports that allege a lawyer working at Atanaskovic Hartnell transferred millions of dollars from a client into his personal bank account and into his personal betting accounts raise questions as to whether the relevant financial institutions and betting companies actually investigated such transactions which would at the least by virtue of the quantum be classified as being unusual and suspicious.Know your client and suspicious transaction reports
AML CTF RISK ASSESSMENTS AND CONTROLS
The UK Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 were enacted on 26 June 2017.
Section 18 specifies that in identifying and assessing the risks of money laundering and terrorist financing to which its business is subject reference must be had to the following:-
(i) its customers;
(ii) the countries or geographic areas in which it operates;
(iii) its products or services;
(iv) its transactions; and
(v) its delivery channels.
In deciding what steps are appropriate, the firm/entity must take into account the size and nature of its business.
Policies and controls and procedures to mitigate and manage effectively the risks of money laundering and terrorist financing identified in any risk assessment undertaken are to include:-
(i) regularly review and update the policies, controls and procedures
(ii) maintain a record in writing of the policies, controls and procedures
(iii) any changes to those policies, controls and procedures made the steps taken to communicate those policies, controls and procedures, or any changes to them, within the relevant person’s business.
The policies, controls and procedures adopted must be—
(i) proportionate with regard to the size and nature of the relevant person’s business, and
(ii) approved by its senior management.
The policies, controls and procedures must include—
(i) risk management practices;
(ii) internal controls
(iii) customer due diligence
(iv) reliance and record keeping
(v) the monitoring and management of compliance with, and the internal communication of, such policies, controls and procedures.
Polemic Forensic will be presenting a seminar pertaining to anti money laundering risk processes on 21 November 2017 at Level 3 111 Harrington Street Sydney.
The seminar will deal with issues including client risk classification, risk monitoring and controls, risk assessment factors, Transparency International, politically exposed persons, negative information and industry risks.
The Anti Money Laundering and Countering Financing of Terrorism (AML/CTF) Act 2009 will impact upon accountants and lawyers whom conduct business in New Zealand.
The legislation is operative as from 1 October 2018.
Accounting firms will be required to appoint a compliance officer, perform risk assessments, develop an appropriate programme and report suspicious transactions.
The legislation and its impact is similar to that enacted in the United Kingdom.
Airbus, Europe’s largest aerospace multinational, appears to be facing years of investigation by French and UK authorities amid allegations of corruption over jet sales. The investigation began after Airbus drew the attention of regulators to inaccurate declarations it had made to the export credit finance agency over payments to sales agents.
According to the Guardian newspaper, evidence including hundreds of pages of leaked bank records, internal memos and financial statements reveal that two firms secretly controlled by Airbus engaged in transactions involving €19 million (£16.7 million), a large part of which was then routed to an unknown company via a tax haven. When asked, Airbus was unable to say who had received the money, nor why its control of the two companies had been concealed.
In 2007, Eolia, a Maltese company that retrofits passenger jets to transport cargo, bought 26 per cent of Avinco Holdings, a Dutch company that sells second-hand aircraft and helicopters. Both firms presented themselves as independent entities without any significant external support from other firms but in reality they were secretly controlled by Airbus.
Meanwhile, Avinco Holdings is mainly financed by a UAE businessman who held 14,999 shares through a holding company. Airbus owned only one share through a shell company in the tax haven of Curacao. However, according to a secret agreement, Airbus had the right to seize control of Avinco Holdings at any time. In exchange, the UAE businessman received an annual dividend equivalent to 20 per cent of his total investment.
It will certainly be a lengthy investigation as records going back over many years will need to be combed through and the organisations involved are distributed across the globe. However, once the forensic accountants start sifting through the evidence, a picture will begin to emerge.