Current UK money laundering regulations require financial institutions to apply adequate due diligence when assessing clients. If money laundering is taking place and factoring professionals have not checked out the background of their client company, factoring company directors could be subject to heavy fines and imprisonment. It is therefore crucial that factoring professionals know how to prevent it happening and are aware of the warning signals that could indicate it is taking place.
Neil McGivern, Managing Director of Bibby North West, told BCR about the problems he encountered with a money-laundering client; problems that included death threats from the criminals to his home telephone. Mr McGivern and the bank involved could have been charged as culpable.
