Today (Thursday 22 September) the Insolvency Service said that it has imposed a fine of £6,500 on John Kelmanson, formerly of David Rubin & Partners and currently a consultant of Begbies Traynor, for failing to comply with anti-money laundering (AML) regulations.
The public order (set in July, but just announced) said that John breached obligations contained in the 2017 Money Laundering, Terrorist Financing and Transfer Funds Regulations in his role as Liquidator of an unnamed company. We are not picking on him, and are just repeating what we have heard, but apparently he failed to retain records in connection with his appointment as Liquidator of the company at issue.
Updating us all on the level of fine, the Insolvency Service said that a penalty of £5,000 is a starting point for a 'serious failure to comply with the fundamental principle of competence and due care'. We are told that Mr Kelmanson was fined £6,500 because of his 'lack of co-operation' and 'poor understanding of the importance' of AML checks, the service said.
He was the appointed Liquidator for Primrose Associates, which went into Liquidation in June as £4 million of client money was allegedly transferred to another business, Evaluate Technologies, which has also gone into liquidation. Creditors have been contacting the service over concerns that their money went lost.
We are not dancing at John's wake, but NTI have some rather splendid AML training that updates and certifies and we would rather not be knocking on your closed stable door having spotted your horse reach the horizon.