The advice lists a number of red flags which accountants and finance professionals need to be aware of, from wire transfers following cash deposits to negative media coverage about the client or company.

Other issues which should be checked in the course of conducting due diligence with clients include unusual business activity; being unable to ascertain sources of funds; transfers of money where there is no apparent business relationship; and sending or receiving funds by international transfers to/from locations of concern. CCAB recommends that accountants keep an eye on the Treasury sanctions list for high risk jurisdictions.

CCAB’s financial activity alarm bells also include the use of cash mules, pre-paid gift cards, pre-paid credit cards and diversion of funds.

Anthony Harbinson, ACCA president and chair of the CCAB anti money laundering task force said: ‘Funding terrorist activity is not necessarily expensive, with small amounts of money often financing such crimes. And it is for this reason that accountants need to be hyper-vigilant and aware of the pitfalls which may not always be so obvious – hence the need to apply professional scepticism and judgement, and be aware of the warning signs.

‘The fact that we are not looking at large amounts of money changing hands makes terrorist financing that much more difficult for an accountant to spot, but not impossible. It’s often so called ‘low level or ‘low risk’ activities that fund crime and terrorism - DVD pirating, counterfeiting, cigarette smuggling or credit card fraud.’

Campaigning group Transparency International UK published a report last month on the difficulties faced by the UK's law enforcement agencies in trying to prevent corrupt wealth being laundered through the UK.

It said the current system is not fit for purpose, as just seven reports of suspicious financial transactions, identified as possibly linked to international corruption, were acted on by the UK in 2014.

The research suggested the system needs an overhaul, including more resources, and that the government should consider new mechanisms used already by other countries such as Unexplained Wealth Orders.

A government review into the UK’s antimoney laundering laws, which was promised before the May election, has been delayed, and the new government has said it will now review anti money laundering laws before the end of the year with an action plan expected after its completion.

The Financial Action Task Force (FATF), the Paris-based body that sets international standards to try to prevent money laundering, is expected to launch its own review of the UK’s record in 2016.

CCAB’s guides are available here:

Accountants and counter terrorism guide

Staying safe within the money laundering regulations guide

CCAB is the collective forum of accountancy bodies ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.