Dec 6 2010 The Journal

http://www.nebusiness.co.uk/supplements/business-innovation-north-east/winter-2010/2010/12/06/money-laundering-warning-to-housing-associations-51140-27750992/

SOCIAL housing providers from across the North East are one of the biggest victims of money laundering Crutes Law Firm told guests attending a seminar in Teesside.

Housing associations were warned that unless they put systems in place to avoid being targeted by money launderers they may also face heavy fines or even prison sentences.

The Office of Fair Trading (OFT) has said that it will start to take rigorous enforcement against unprotected organisations and with 50% of the social housing sector yet to put controls in place to protect against money launderers, many organisations and individuals are facing heavy sanctions.

Crutes, which has offices in Teesside, Newcastle and Carlisle, has teamed up with Tait Walker Accountants to offer support to social housing organisations. They will provide training, surveillance and monitoring, as well as advice on internal procedure reviews and remedies and recovery in the event of an incident of money laundering.

Sue Howes, partner at Crutes Law Firm in Teesside, said: “It is very important that social housing providers understand the current regulations and their implications so that they can protect themselves against money launderers and avoid any problems with enforcement policies.” Crutes acts for numerous social landlords and regularly offers advice on residential and commercial landlord and tenant law to housing associations, housing co-operatives, arms-length management companies and other landlords.

Steve Mackle, a former police officer who now works for Tait Walker will speak at the event. Steve, who has many years’ experience in the investigation of organised crime and money laundering, has provided training and assistance to a number of housing associations on dealing with the issue.

He said: “This is clearly a problem for social housing providers because potential tenants who genuinely require this type of housing are not able to move into homes because criminals are occupying the properties. As a result, the sole purpose of social housing is ruined.”

Peter Camp, financial accountant at Sedgefield Borough Homes attended the seminar. He said: “I think all housing associations are at risk at present, particularly in the current economic climate where a small minority of people are trying to use extreme measures to pay for properties.

“The seminar was really eye-opening and it provided guests with valuable advice on monitoring suspicious overpayments and right to buy applications.

“I don’t think the problem of money laundering can ever be fully eliminated but organisations can certainly manage it and try to minimise it as much as possible.”

I think all housing associations are at risk at present