C10 - Money Laundering

Question 1

Stages

Answer 1

Placement - intro to bank, easily identifiable

Layering - camouflage funds complex transactions

Integration - impossible to distinguish

Question 2

Terrorist financing

Answer 2

Serious violence against a person

Damage to property

Endangers a life

Risk to h&s

Question 3

Financial action task force on money laundering

Inter-gov policy, making body G7

Task

Answer 3

Identity and analyse ml/tf
Examine impact to compact misuse of financial system
Support national/regional and global threat
Assess and monitor members

Question 4

Aml legislation

Primary legislation

Answer 4

Proceeds of come act 2002

Question 5

Aml legislation

Offences of ML

Answer 5

Acquisition use of possession offence
Fail to report offences
Arrange offences
Conceal offence

Question 6

Employees obligation

Answer 6

Assist/know laundering crime
Must report suspicion
Timely report

Question 7

Employers report

Answer 7

Procedures verify identity
Record keeping
Transaction records
Monitor compliance

Question 8

Kyc

Answer 8

Name and address

Source of funds

Question 9

Keeping records

Answer 9

Investigating officers need to know

What happened in transaction
Identity verification 
Underlying beneficial owner
Evidence
Parties to each transaction

Question 10

Preventative measures

Answer 10

Prep accounts 
Risk grade
Regular client meetings
Annual review
New business client check list

Question 11

Making a report

Answer 11

Confidential
Name not revealed
Person report it - can’t appear in court
Comp/individual can’t be sued for breach of confidentiality

Question 12

Recognising money laundering

Answer 12

Recepit of unusually large cash deposits

Receipt of funds instruction to move elsewhere

Reluctant to receive payments directly

Use of dummy settlor

Lack of legal/tax advice

Lack of desire to receive reports on performance