AML Flashcards
What is money laundering?
When proceeds of criminal activies are disguised and then realised as legitimate assets
What is the key bribery legislation?
Bribery Act 2010
What is a bribe?
Dishonestly persuading someone to act in one’s favour illegally or breaching a parties trust
What are the principles of the bribery act?
Proportionality
Top level commitment
Risk assessment
Due dilligence
Monitor and review
Communication
What are the four offences of the bribery act?
Giving a bribe
Recieving a bribe
Bribing a foreign official
Failing to prevent a bribe
What are the penalties of the bribery act?
Unlimited fine / 10 years prison
What is the money laundering legislation?
Terrorist Financing and Transfer of Funds Regulations (2017)
What are the key provisions of the Terrorist Financing and Transfer of Funds Regulations (2017)
- Written risk assessment
- Implement AML systems
- Adopt appropriate internal controls
- Provide training
- Comply with CDD requirements
- Comply with PEPs requirements
- Appropriate record keeping
- Must undertake AMLs to determine beneficial owner
- EDD when high risk
Who policies the Bribery Act?
Serious Fraud Office (SFO)
Who do you send a SAR to?
National Crime Agency (NCA)
What are the penalities of CDD non-compliance?
Max 14 years prison / unlimited fine for assisting with money laundering
Max 5 years prison / unlimited fine for tipping off
What evidence of constitution is required for a Plc?
London Stock Exchange listing
How long should firms hold records for?
5 years
What are the red flags associated with money laundering?
Inability to provide ID
Changes to parties involed
Unexpected urgency
Unusual currency
What is the Proceeds of Crime Act 2002?
Provides authorities the power to recover criminal proceedings money and other assets which are deemed to be proceeds of crime
