Cash payments up to a certain limit are not subject to laundering rules

Official-looking letters are sent to companies asking them to send hundreds of pounds for 'compliance packs'.

If firms accept cash payments for goods or services, they are wrongly told they are legally required to buy the packs.

In fact, firms which accept single cash payments of less than �10,415 are not subject to money laundering laws.

The warning to small businesses was issued by the Association of Chartered Certified Accountants (ACCA).

Clean up

New rules to combat money laundering were introduced in April this year with firms outside the financial sector included for the first time in the regulated sector.

Any business receiving such a letter should report it to their local Trading Standards office John Davies, Association of Chartered Certified Accountants

The measures were designed to take account of the fact that criminals were increasingly turning to avenues other than banks and financial institutions to launder the proceeds of crime.

For years, finance firms have been obliged to report suspicious transactions to the National Criminal Intelligence Service (NICS).

But now this sector includes accountants, lawyers, estate agents, casino operators and any firm which accepts more than the �10,415 cash ceiling.

High-value dealers, such as auctioneers or car dealers, now have to register with Customs and Excise and make a "suspicious activity report" to the NICS on any cash transactions above that limit.

No obligation

If this threshold is exceeded, companies must also appoint an in-house money-laundering officer to ensure staff are trained in anti-money laundering skills.

But no business is under obligation to buy compliance packs from any single source, said the ACCA.

Firms are being urged to be on the lookout for the bogus mailshots.

"Although these letters look very official - and even include a form taken from the NCIS website - they are bogus," advised John Davies, head of business law at ACCA.