Chapter 26 Flashcards
What is money laundering?
It includes all forms of using or possessing criminal property regardless of how it was obtained.
Who are the supervisory bodies in regards to money laundering?
CIOT and ATT for members overseen by CIOT or ATT.
If a member not overseen by a listed professional body, their supervisory body is HMRC
Who needs to be supervised by a supervisory authority?
If you are carrying out business in the tax and accounting sector, you or your firm must be supervised
Who doesn’t need to be supervised by a supervisory authority?
If you are:
- An employee
- Fully retired member
- Work entirely outside the UK
- If you don’t work in tax and accounting sector
As a member of the CIOT/ATT, am I automatically supervised for AML regulations?
No - you need to apply for AML supervision
What’re the firm’s obligations in regards to CIOT/ATT AML supervisions scheme?
A firm must:
• Comply with the UK AML/CTF legislation
• Conduct its practice in accordance with the laws of CIOT/ATT
• Comply with the CIOT and ATT AML Scheme rules
In how many days must a registrant notify the association of any change in details provided in application form?
14 days
The UK anti-money laundering regime applies to what?
Defined services carried out by designated businesses.
What do POCA and TA 2000 contain?
Offences that can be committed by individuals or organisations
Are branches and subsidiaries outside the UK which have their day to day management from the UK included in the scope of UK AML regulations?
Yes
Do you need to register for AML supervision if only do pro bono work?
No
Regulation 11(c) of the 2017 regulations defines an external accountant as what?
As someone who provides accountancy services to other persons by way of business
Criminal property can take many forms, give examples of these
- Money or Money’s worth
- Securities
- A reduction in liability
- Tangible or intangible property
what can money laundering activity include?
- a single act
- Complex and sophisticated schemes
- Multiple methods of handling and transferring criminal property
- Concealing criminal property or entering into arrangements to assist others to conceal criminal property
What do terrorist financing offences relate to?
- fund-raising for terrorist activities
- using or possessing terrorist funds
- Entering into funding arrangements for terrorism
- Money laundering (s.28 TA 2000)
- Disclosing info related to the commission of an offence
- Failing to make a disclosure in the regulated sector
Someone commits a money laundering offence if they….
- conceal, disguise, convert, transfer or remove criminal property from England and Wales
- enter into, or become involved in and arrangement which they know or suspect facilitates the acquisition, retention, use or control of criminal property
- acquire, use or possess criminal property
What is the max punishment for ML?
14 years of imprisonment or an unlimited fine
How does one commit a ML offence?
If they conceals, disguises, converts, transfers or removes criminal property from England and Wales or from Scotland or Northern Ireland
A ML offence hasn’t been committed if what?
- The person involved didn’t know or suspect that they were dealing with proceeds of crime
- A report of the suspicious activity is made promptly to: MLRO, NCA and SAR is made
- There is reasonable excuse for not reporting
- the conduct which gave rise to criminal property is a) reasonably believed to have occurred in a place where it is legal and b) would have carried a max sentence of 12 months or less
What does SAR stand for?
Suspicious activity report
Does an individual commit and offence if they fail to disclose any information on suspicious behaviour?
Yes, unless they have a reasonable excuse for not disclosing the information or another matter / if they are a professional legal adviser / have no knowledge or suspicious and hasn’t received AML training
Is it an offence to disclose to a third part that a SAR has been made by any person if that disclosure might prejudice any investigation?
Yes
What is the penalty if one prejudices any investigation?
Imprisonment for a max of 2 years and/or a fine
