AML Flashcards
What is the full title of the regulations effective from 10 January 2019?
Money Laundering, Terrorist Financing & Transfer of Funds (Information on the Payer) Regulations 2018
What major changes does the 5th Money Laundering Directive (5MLD) bring?
Regulating virtual currencies and pre-paid cards, improving safeguards for transactions with high-risk countries, ensuring centralised national bank and payment account registers are accessible.
What is the new cash payment limit set by the 5MLD?
€10,000 or its currency equivalent
Who must register with HMRC under the Anti-Money Laundering regulations?
Estate Agency businesses
What are the penalties for money laundering offences?
Penalties range from fines to imprisonment depending on the severity of the offence. Small non-compliance issues may lead to fines, while serious criminal acts can lead to imprisonment and/or unlimited fines.
What are the key UK AML laws?
The Proceeds of Crime Act (POCA) 2002, The Criminal Finances Act (CFA) 2017, The Money Laundering Regulations (MLR) 2017
What does the POCA describe as the main violations?
Concealing, arranging, and possessing offences, and failure to report a criminal act.
What are the three categories of culpability according to the Sentencing Council?
High Culpability (Category A), Medium Culpability (Category B), Low Culpability (Category C)
What is the starting point of imprisonment for laundering more than £10 million in Category A culpability?
10 years
What is the fine bracket A based on weekly income for financial penalties?
50% of weekly income
How are fines calculated under the AML regulations?
Fines are based on a percentage of the weekly income and the amount of money laundered. Brackets range from 50% to 600% of weekly income.
What should businesses do to avoid penalties related to AML regulations?
Comply with the AML laws and refer to HM Revenue and Customs Money Laundering Regulations guidance for compliance support.
What role must be nominated in a business to handle AML responsibilities?
Money Laundering Reporting Officer (MLRO)
What is required for Customer Due Diligence (CDD) under AML regulations?
CDD is required on both buyers and sellers.
What are the potential penalties for failing to prevent money laundering or financing terror?
Penalties can include imprisonment (up to 13 years) and fines, which can be unlimited depending on the severity of the crime.
