AML: Suspicious Activity Reporting

Question 1

What are the key elements required for making a SAR?

Answer 1

Crime
Proceeds
Suspicion

Question 2

What are the defences against the s.331 of POCA 2002 offence of failure to disclose?

Answer 2

There is a reasonable excuse for not making the disclosure
The individual did not know about or suspect money laundering and had not received the training required by the 2017 regulations
The privileged circumstances exemption applies

Question 3

Is “the individual made a disclosure to another relevant professional adviser within the same profession” a defence for failure to disclose?

Answer 3

No

Question 4

What are your obligations as a trainee to report money laundering under s.330 POCA 2002?

Answer 4

You can only discharge your obligations under POCA 2002 by reporting to the MRLO

Question 5

What must be included in the SAR made to the NCA by a firm’s money laundering reporting officer regarding a tax client?

Answer 5

The name of the firm for which the MRLO is reporting
The reasons for suspicion

Question 6

You suspect ML after preparing a report which will be used by your client’s legal adviser for an upcoming court case, what exemption is available with making a SAR to the NCA?

Answer 6

Privileged reporting exemption

Question 7

After how long id default consent given after a request has been made to the NCA to continue to act for a client?

Answer 7

7 working days

Question 8

What does MRLO stand for?

Answer 8

Money Laundering Reporting Officer

Question 9

You are a a tax adviser at a large firm and find a document which shows your client has been fraudulent, who should you disclose this discovery to?

Answer 9

Your firm’s MRLO

Question 10

You are a sole practitioner and discover your client has omitted information from a tax return and evaded tax, what are the implications?

Answer 10

You should report to the NCA
Anything you might say to your client could constitute tipping off

Question 11

You are a sole practitioner and made a report to the NCA about a client, you are no longer suspicious about that client, what should you do?

Answer 11

Continue to act for the client if the 31 days has passed and/or consent has been obtained

Question 12

What should be included in an external SAR?

Answer 12

Information to help identify the suspect
The crime that has been committed or suspected

Question 13

What should not be included in an external SAR?

Answer 13

The name of the relevant employees who made the original SARs to the MRLO
The whereabouts of the victim

Question 14

How is suspicion defined?

Answer 14

A state of mind falling short of evidence based knowledge
A slight opinion

Question 15

You strongly suspect your client is money laundering, you haven’t made a report though and plan to make further enquiries before doing so, what offences are you potentially exposed to?

Answer 15

Failure to disclose
Tipping off

Question 16

Is an SAR required where the information was received in privileged circumstances?

Answer 16

No

Question 17

When does the privileged circumstances exemption not apply?

Answer 17

When information was provided with the intent of advancing a crime

Question 18

Would advice on the legal aspects of a takeover bid fall within privileged circumstances?

Answer 18

Potentially

Question 19

You work for a large tax firm, suspect tax evasion and wish to discharge your responsibilities, who could you report this to?

Answer 19

NCA
Your firm’s MRLO

Question 20

Do you need to now who might have benefitted from the criminal activity when you make an external report to the NCA?

Answer 20

No