HUNDREDS of businesses in Bolton may be unaware that they will be forced to comply with new regulations to stop money laundering.

Local law firm DLA is warning that companies such as management consultants, advertising agencies and financial advisors will now have to ensure that they understand what money laundering is and the protocol for reporting suspicious activity.

DLA is advising these companies to implement a number of simple precautions in order to avoid any problems.

The latest changes to the draft legislation include an expansion of the number of "relevant businesses" that must comply.

These are companies involved in the provision of services in relation to the formation, operation or management of a company or trust.

John Gollaglee, an associate within DLA's regulatory team, said: "The courts consider a person, whether at board level or lower management, who makes decisions and carries some responsibility rather than simply obeying instructions, as being concerned in the management of a company.

"This means that external consultants who provide services to their clients, which amounts to being concerned in the running of a company, will now be required to take responsibility for reporting any knowledge or suspicion of money laundering.

"Basic steps such as appointing a money laundering reporting officer and implementing a training programme for staff will help to ensure that businesses are prepared for the regulation changes."

Failure to report a knowledge or suspicion of money laundering is a criminal offence punishable by a maximum of five years imprisonment, a fine, or both."