Chapter 10 part 6 Flashcards
In general terms there are three strands to the legal rules that apply to money laundering.
These strands are?
• Specific laws that define what represents a criminal offence and the penalties that apply to such acts (which are of general application).
• Money laundering regulations that apply to a stated range of firms carrying on activities in the financial sector (but not specifically to general insurance or general insurance mediation).
• Regulatory rules and guidance apply in different ways to different categories of firms.
Criminal Justice Act 1993 made what a criminal offence?
to launder gains from other crimes
Or not reporting any knowledge or suspicion of money laundering.
Or ‘tipping off’ a suspected person a criminal offence.
What is the max sentence you can get from assistance to a criminal where you either know or suspect, or ought to have known or
suspected, that money laundering was taking place?
(maximum 14 years’ imprisonment
What is the max sentence you can get from failing to report either actual knowledge or suspicion of money laundering ?
maximum five years imprisonment
What is the max sentence you can get from “tipping off”?
Deliberately telling someone that you suspect them of being involved in money laundering or that there is a formal or police
investigation under way.
maximum five years’ imprisonment
What does POCA stand for?
Proceeds of Crime Act 2002
What does ARA stand for?
Assets Recovery Agency
POCA set up as what agency?
an Assets Recovery Agency (ARA)
What is the purpose of POCA?
to recover the proceeds of criminal activit
Offences under POCA are doing what?
• Concealing, disguising, converting or transferring criminal property or removing it from the UK.
• Acquiring, possessing or using criminal property.
• Failing to disclose that someone else is engaged in money laundering.
The Serious Crime Act 2007 extended a range of serious crime prevention orders that could be made by the High Court and amended POCA in a number of important respects. It abolished the ARA and transferred all its activities to who?
the Serious Organised Crimes Agency
(SOCA)
What does SOCA stand for?
the Serious Organised Crimes Agency
(SOCA)
SOCA’s operations merged into a larger National Crime Agency (NCA) created through what act?
e Crime and Courts Act 2013
The Serious Crime Act 2015 ensure the National Crime Agency, the police and other law enforcement agencies have the powers yo do what?
effectively and relentlessly pursue, disrupt and bring to justice serious and organised criminals
What does MLR 1993 stand for?
Money Laundering Regulations 1993
Who does the MLR 1993 apply to?
Defined organisations operating in the UK financial sector, but not general insurance activities, including mediation activities.
What does the MLR 2017 cover that the MLR 1993 didnt?
a wider range of businesses
What range of buisness’ does the MLR 2017 cover?
• credit and financial institutions (including life insurance companies and financial advisers); and
• auditors, accountants, tax advisers and insolvency practitioners, independent legal professionals, trust or company service providers, estate agents, high value dealers (dealing with goods with a transaction value greater than €15,000).
What areas does the MLR 2017 cover?
• Customer due diligence - age ID, intended purpose checks ect
• Policies and procedures. - record keeping, internal controls ect
• Registration - must register with FCA and have procedures for refusals
• Enforcement. - right to enter and inspect premises and use appropriate civil penalty’s.
‘Financial crime’ is defined in the Act as what?
fraud, dishonesty, misconduct in, or misuse of information relating to, a financial market or handling the proceeds of crime.
how often must you report on systems and controls and effectiveness?
Annually at a minimum
What does MLRO stand for?
Money laundering reporting officer
Who is the MLRO?
A director or senior manager who takes overall responsibility for establishing and maintaining effective anti-money laundering systems and controls within the firm
The MLRO must tick what criteria?
• expected to be based in the UK;
• required to have a certain level of authority and independence within the firm; and
• required to have sufficient resources and information to enable them to fulfil their responsibilities.
