DRUG and terrorist money came under a stronger threat this week when new money laundering laws came into effect.

Now businesses such as estate agencies, casinos, tax advisers, auditors and retailers who deal in goods priced £10,000 or more are duty bound to report any suspicions.

Anyone conducting business in these sectors are required to have systems in place to forestall money laundering. These include identifying customers, appointing a money laundering reporting officer and keeping records.

Companies who have suspicions must report them to the Financial Intelligence Division of the National Criminal Intelligence Service and are forbidden to tell their customer they have done so.

Ruth Kelly, Financial Secretary to the Treasury and Bolton West MP, said: "These regulations represent an important development in tackling both money laundering and terrorist financing, and ensure our systems meet international standards. They have been developed in consultation with industry to ensure that an excessive burden is not placed on business.

"The proceeds of money laundering allow criminals to profit from their crimes and are used to fund organised crime and terrorism. The integrity of the UK financial system is dependent on there being robust measures in place."