Chapter 7: Regulatory processes, systems and controls Flashcards
Define ‘bribery’
Corruption.
Define ‘client verification’
Firms must work to verify that their clients are who they say they are
Define ‘solvency II’
Define ‘systems and controls’
What must syndicates do to comply with foreign rules?
Must obtain information about applicable rules, and must plan, but some guidance is centrally provided by Lloyds
What data is normally collected and coded to identify compliance iwth regulation?
Location of the broker, the risk, tax payable, and whether the business is direct or re
Define ‘sanctions’
Esssentially a ban
Define ‘financial sanctions’
Bans finanical in nature
Define ‘trade sanctions’
Sanctions about trade
Who is responsible for the implementation ad administration of financial sanctions from the UK government?
the Office od Financial Sanctions Implementation (OFSI)
WHo has to abide by EU sanctions?
Members of the EU, and all persons and entities doing trade in the EU
Which special country does the US have sanctions against?
Cuba, and must be complied with by all US citizens, and all branches and subsidaries
What are practical problems with sanctions?
Paying out ransoms to pirates, as it is unclear who they are and where money is coming from
What do export controls do?
Control the exportation of certian goods, such as capital punishment tools or military goods
How do export controls relate to insurance?
If items under export control are beimg insured, they need a license
What info does UK GDPR refer to?
Personal data of an identified living individual- but the definition of personal data shifts to include new technologies
What are the main elements of the Data Protection Act 2018?
Ensures that sensitive data can continue to be collected, setting the age to when parental cnsent is not required, and giving the ICO enhanced regulatory powers
Which areas of business does GDPR apply to?
ALL
What is money laundering?
The process by which criminals attempt to disguise the origin of cash or other assets that they have earned from crime
What are the three stages of money laundering?
Placement, layering, and integration
Which act established the current principal money laundering offences?
the Proceeds of Crime Act 2002
Define ‘finanical crime’
Fraud, dishonesty, or misconduct in a financial market
Define ‘money ;aundering reporting officer’
Each firm has one. Must report at least annually on how the systems and controls operate
