5 - Financial Crime

Question 1

What are the 3 steps of Money Laundering?

Answer 1

Placement, Layering and Integration

Question 2

Under Money Laundering regulations, when is customer due diligence always required?

Answer 2

On new clients where a business relationship is to be established

Question 3

What markets does insider dealing regulation relate to?

Answer 3

Securities markets (exchange traded only)

Question 4

What category of function does the FCA put Money Laundering Reporting Officers (MLRO) under?

Answer 4

Senior Management Function

Question 5

What is a defence under the insider dealing legislation?

Answer 5

Acting on inside information when the source is not known

Question 6

To whom does Insider Dealing Regulation apply?

Answer 6

Regulated Individuals and members of the public i.e. companies cannot commit an offence

Question 7

What is the maximum prison term for insider dealing?

Answer 7

10 years

Question 8

What penalty can the Information Commissioner impose if a firm doesn’t comply with GDPR?

Answer 8

Fine of €20m or 4% of annual takeover (whichever greater)