BUAW - Money Laundering Flashcards
What are the stages of Money Laundering?
- Placement
- Layering
- Integration
What is money laundering?
Cleaning money to make it look like it was obtained legitimately
How can an accountant be found guilty of money laundering?
If they provide accounting services while turning a blind eye to the clients suspect dealings
Is there a de minimis expecting for money laundering?
No, the value is irrelevant
What are money laundering penalties?
Unlimited fine or prison sentence of up to 14 years
Who should an accountant report suspicion of money laundering to?
The Money Laundering Reporting Officer who can review and decide if it needs to go to the National Crime Agency
When is a disclosure required of an accountant?
When an accountant wants to offer services to a client who is suspected of terrorist financing
When an accountant knows it suspects terrorist financing is taking place
What must the suspicious Activity Report contain?
Identity of suspected person
Information the suspicion is based on
Whereabouts of laundered property
Details of who is making the report
What does the person submitting the report receive?
Protected disclosure from breaching confidentiality
When is there an exception to report?
- When information was obtained other than in the course of the accountants business
- When information is received in a privileged circumstance
- When a reasonable excuse for not reporting right away is given, only threats to safety accepted
What are the money laundering offences?
- Concealing
- Arrangement
- Acquisition
What is the punishment for failing to disclose money laundering?
Maximum 5 years in jail and/or a fine
What’s the maximum penalty for tipping off?
5 years in jail and/or a fine
What is Customer Due Diligence?
Evaluating a perspective business decision by investigating financial, legal and other important information
