CH11 Criminal Law Flashcards
- Identify instances of money laundering and the obligations on professional accountants to detect and help prevent money laundering - Identify offences and their consequences under the anti-money laundering legislation and select appropriate courses of action to protect professional accountants from criminal liability. - Identify instances and consequences of bribery - Identify instances and consequences of fraud in a given scenario, including -The effect of the Fraud A
What is the penalty for money laundering? I.e.:
Concealing or helping to conceal criminal property
Acquiring or using criminal property
Inciting others to do the above
14 years imprisonment or
an unlimited fine
What is the penalty for failure to report? I.e.:
Failure to inform MLRO/NCA of any knowledge or suspicion that someone is engaged in money laundering
5 years imprisonment or
an unlimited fine
What is the penalty for tipping off?
2 years imprisonment or
an unlimited fine
What is the possible defence and how is it interpreted by the courts?
Reasonable excuse
Very narrowly - threats of physical violence
Which Act covers covers tax evasion?
Criminal Finance Act 2017
Does the Criminal Finance Act 2017 make a company or an individual criminally liable if they are involved in tax evasion? Under what circumstances?
A company/other business organisation (if their employees or agents are involved in tax evasion).
Are there similar offences to money laundering in terms of facilitating tax evasion and failing to prevent it with the Criminal Finance Act 2017?
Yes
What is the company’s defence against criminal charges of tax evasion under the Criminal Finance Act 2017?
If the company/business had reasonable prevent procedures
If it was unrealistic to have them
Broadly, what does the Money Laundering Regulations 2017 cover and who does it apply to?
They apply to all relevant persons and seek to enforce:
Record keeping
Client due diligence
Staff training
More specifically, what does the the Money Laundering Regulations 2017 want relevant persons to be able to recognise and provide?
Allow suspicious transactions to be recognised and reported
To provide an audit trail on a future investigation
Is non compliance with the Money Laundering Regulations 2017 a criminal offence and what is it punishable by?
Yes
2 years imprisonment and/or
a fine
Does money laundering have to have actually taken place for an offence to be committed under the Money Laundering Regulations 2017 for a fine and/or imprisonment to be imposed?
No
When do you have to do CDD? 5 things
- New business relationship
- Business formation service
- Occasional transactions
- Money laundering/terrorist activities suspected
- Doubt veracity of information provided
What must you do in terms of CDD? 4 things
- Identify customers and verify their identity
- Identify beneficial owners/people with significant influence
- Obtain information on nature/purpose of business relationship
- For organisations, identify who has ultimate control
When does legal privilege apply and who does it apply to?
Professionals giving litigation advice
What are the four main offences contained in the Bribery Act 2010?
- Bribing another person
- Being bribed
- Bribing a foreign official
- Corporate failure to prevent bribery
What does bribing another person involve?
Where someone offers, promises or gives financial or other advantage to another person to induce or reward them for improperly providing a relevant function or activity
Does the bribe need to be offered to the person who performs the function?
No
Can the benefit of the bribe be to a third party?
Yes. E.g. someone lets your child into the school of your choice.
Must the bribe be given before or after the improper performance?
Either
What does being bribed involve?
Requesting, accepting or receiving financial or other advantage as a reward for improper performance of a relevant function or activity
What is a relevant function or activity in terms of bribery?
Where the person performing the function is in a position of trust
What are examples of a relevant function or activity in relation to bribery? Does it need to be connected to the UK?
- Any activity of a public nature
- Any activity related to business
- Any activity in the course of employment
- Need not have any connection with UK
What is improper in relation to bribery?
Does not meet the standard which a reasonable person in the UK would expect