Professional Values and Basic Business Legislation

Regardless of what type of organisation you work for, if you are working in an accounting role, you are in a position of trust To gain peoples trust you must work in a professional manner with integrity and act ethically

Ethics What does this mean? What is a ‘code of ethics’? In pairs you now have ten minutes to research on the internet some of the items on the code of ethics for the IAB, AAT and ACCA

Accounting ethics The expectation from the general public for those working in the accountancy profession to offer services of a high standard, indicated the need in 2005 for the International Federation of Accountants (IFAC) to issue a ‘Code of Ethics for Professional Accountants’

The code assists accountants throughout the world to apply ethics when dealing with the public, employers and clients. Compliance with this code is based on five fundamental principles –Integrity –Objectivity –Professional competence and due care –Confidentiality –Professional behaviour

I will now put you into groups for an opportunity to discuss those five principles.

Membership of the IAB and the Framework for Regulation When you have completed exams with the IAB you may have the option depending upon work experience to gain professional membership with the IAB. Let’s have a quick look at the Framework for Regulation for the IAB.

The Data Protection Act 1998 Safeguarding our personal data is very important. The Data Protection Act identifies the rights and responsibilities of individuals and organisations who hold personal information about us. The Act covers any information held manually or on a computer regarding identifiable living people What types of information do you think would be classed as ‘personal data’?

The Eight Data Protection Act Principles The act contains eight “Data Protection Principles”. These specify that personal data must be: 1. Processed fairly and lawfully. 2. Obtained for specified and lawful purposes. 3. Adequate, relevant and not excessive. 4. Accurate and up to date. 5. Not kept any longer than necessary. 6. Processed in accordance with the “data subject’s” (the individual’s) rights. 7. Securely kept. 8. Not transferred to any other country unless the country to which the data is being sent has a suitable data protection law. Accessed from

The Data Protection Act identifies roles and responsibilities of both individuals and organisation: The Information Commissioner (ICO) The Data Controller The Data Processor Data Subjects The Data Protection Act sets out the rights of data subjects. Have a go at the matching blocks activity in your groups.

Money Laundering Money laundering means exchanging money or assets that were obtained criminally for money or other assets that are 'clean'. The clean money or assets don't have an obvious link with any criminal activity. Money laundering also includes money that's used to fund terrorism, however it's obtained. Accessed from:

What are the Money Laundering Regulations? The Money Laundering Regulations 2007 came into force in December All businesses that are covered by the regulations have to put in place suitable anti- money laundering controls. If the regulations apply to your business you must put these controls in place as soon as possible. Accessed from:

The Money Laundering Regulations apply to a number of different business sectors, including financial and credit businesses, accountants and estate agents. Every business that's covered by the regulations must be supervised by a supervisory authority. Your business may already be supervised, for example because you belong to a professional body like the Law Society. But if it's not, and your business falls into one of four business sectors, you're likely to have to register with HMRC. HMRC supervises the following four business sectors: Money Service Businesses High Value Dealers Trust or Company Service Providers Accountancy Service Providers Accessed from:

In business do you think that there would be any ‘type’ of customer or client that would pose a greater risk to a business?

Risk Assessment If your business is covered by the Money Laundering Regulations you must put in place certain controls to prevent it from being used for money laundering. These include: assessing the risk of your business being used by criminals to launder money checking the identity of your customers checking the identity of 'beneficial owners' of corporate bodies and partnerships monitoring your customers' business activities and reporting anything suspicious to the Serious Organised Crime Agency making sure you have the necessary management control systems in place keeping all documents that relate to financial transactions, the identity of your customers, risk assessment and management procedures and processes making sure that your employees are aware of the regulations and have had the necessary training Accessed from:

As part of the anti-money laundering controls that you have to put in place, you need to appoint a nominated officer (sometimes called the money laundering reporting officer). If anyone in your business knows or suspects that another person is money laundering or financing terrorism, they must tell the nominated officer. Accessed from: m#1 m#1

Due Diligence Measures Taking steps to identify your customers or clients is known as due diligence. If you worked for an accountancy practice or were a self employed book-keeper, what information would you ask your potential clients to provide you with?

Healthy & Safety Carousel activity with an opportunity to research on the internet