CH26- Overview of the guidance and money laundering defined Flashcards
Anti-Money Laundering Guidance for the Accountancy Sector (AMLGAS)
Produced by CCAB
Consultative Committee of Accountancy Bodies
Helps accountants comply with their AML obligations
Failure to comply- disciplinary action
MUST- mandatory legal and regulatory requirement
Businesses can seek and alternative interpretation of UK AML regime, but must JUSTIFY their decision
Can use alternative practices but must EXPLAIN their reasons
What is money laundering
Using, possessing, facilitation of criminal property regardless of how it was obtained
AML supervisory authority
HMRC is the default if not a member of any professional body
A member of any professional body (e.g. ATT/CIOT)
When do you not need to be supervised by supervisory authority?
Are an employee
Are a fully retired member
Work entirely outside of the UK
So not work in the tax or accounting sector
How to apply for supervision
Application for supervision must be made as not automatic
On registration, certain details must be provided plus fees paid- it is an offence to be in practice as a tax advisor without being registered to AML supervisor
Changes in registration details must be notified within 14 days
UK Anti-Money laundering regime legislation
UK AML regime is contained in the following legislation and amending statutory instruments:
Proceeds of crime act 2002- as amended by serious organised crime and police act 2005
Terrorism Act 2000
Money laundering regulations 2007- place responsibilities on professionals within certain
regulated sectors primarily to report suspicions
AMLGAS- practical guidance for those providing tax and accountancy services in the course of business on how to apply with obligations
When is the regime not relevant?
Not relevant for those just doing pro bono work
Services falling partly within and partly outside- can either apply regime to all services offered or just relevant ones
Court cases
UK courts must take account of AMLGAS when deciding if an offence has been committed
Money laundering offences
Conceal, disguise, convert, transfer or remove criminal property
Enter into arrangements which facilitate the acquisition, retention, use or control of criminal property
Acquire, use or possess criminal property for which adequate consideration not provided
Failure to report suspicion of money laundering (regulated sector)
Tipping off (regulated sector)
Criminal property
Money or money’s worth
Securities
A reduction in a liability
Tangible or intangible property
Consequences of money laundering
14 years in prison
Unlimited fine
Not just restricted to the UK
Also included terrorist financing and activities relating to proceeds of terrorism
Businesses must be alert to risks posed by
Clients
Suppliers
Employees
Their clients customers, suppliers, employees and associates
Legitimate defences to the primary ML offences
No knowledge or suspicion that dealing with proceeds of a crime
Report of suspicious activity made promptly to MLRO/NCA (national crime agency)
There is a reasonable excuse for not reporting (regulated sector)
No actual knowledge or suspicion, and has not received AML training (regulated sector)
Money laundering offence if
Adequate consideration
Do not fall within scope of money laundering
If provide services in the normal course of business
