The Government's attempts to stop money laundering could affect small and medium-sized businesses, according to the region's accountants.

The Proceeds of Crime Act, due to be introduced in June, was criticised because it will effectively require accountants to report even trivial offences committed by their clients or their clients' staff.

Derek Tait Walker, president of the Northern Society of Chartered Accountants (NSCA), said: "As a profession, we are fully committed to helping the police tackle financial crime, but our members are extremely concerned about the practical effects of this Act."

NSCA vice-president Anthony Josephs said: "Chartered accountants need to understand the full ramifi- cations of this legislation and should write to their local MPs about the difficulties they face.

"For example, if an accountant suspects a client is skimming off cash from a business, he or she is obliged to report this to the National Criminal Intelligence Service (NCIS).

"If NCIS responds within seven days requesting that no further work be carried out, the accountant must then cease all activity on behalf of that client for another 31 days.

"As tipping off is also an offence under the Act, what is the accountant supposed to say if the client asks how the work is progressing?"