17 - Money Laundering and Red Flags

Question 1

What is money laundering?

Answer 1

When proceed of criminal activities are disguised and then realised as legitimate assets.

Question 2

What is the associated Money Laundering Legislation?

Answer 2

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Question 3

What position/role must each firm have in place under Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) 2017?

Answer 3

Money Laundering Reporting Officer

Question 4

What is the The Money Laundering, Terrorist Financing and Transfer of Funds Regulation, 2017 ?

Answer 4

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Money Laundering is when criminal activities are disguised as legitimate assets.

Question 5

How can a firm comply with the relevant money laundering regulations?

Answer 5

3. Providing staff training
4. Comply with Politically exposed persons (PEPs)

Question 6

What are the key elements of the RICS Professional Statement on Countering Bribery and Corruption, Money Laundering and Terrorist Financing, 2019? (What constitute a a bribe?)

Answer 6

Mandatory. Includes:
- not offering or accepting bribes
- having compliance procedures
- reporting suspicions

Question 7

What RICS Professional Statement recently got produced on the topic of Money Laundering? And from when is it effective?

Answer 7

RICS Professional Statement – Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019). Effective from 01 September 2019.

Question 8

What are some red flags associated with potential money laundering?

Answer 8

• inability or unwillingness to provide identity documents
• Changes to parties during transactions
• Unusual transaction features i.e. unexpected urgency, potential loss-making
• Payment of fees, purcahse or rental monies in unusual currencies

Question 9

If asked about AML, consider the following:

Answer 9