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IAD Level 4 > Chapter 8: Financial Crime > Flashcards

Chapter 8: Financial Crime Flashcards

1
Q

What is the legislation for insider dealing

A

Criminal justice act 1993 S52

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2
Q

What is the legislation for market abuse

A

UK mar and FCA sourcebook

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3
Q

What is the legislation for misleading statements and impressions

A

FSA 2012 S89-S91

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4
Q

What is insider dealing activities on

A

Dealing on
Encouraging others to deal
Disclosure of

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5
Q

What instruments are covered for insider dealing

A 
Shares 
ADRs
Warrants
Debts
Options 
Futures
CFDs
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6
Q

What are the excluded investments for insider dealing

A 
Assets with no secondary market e.g bank account, unit trusts
Commodities
Commodity derivatives
Spot and forward FX
Insurance products
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7
Q

What are the general defences for insider dealing

A

No advantage was expected
Believed info was widely disclosed
Would’ve dealt anyway
Didn’t expect recipient to deal

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8
Q

What are the special defences for insider dealing

A

Stabilisations
Market information
Market makers in the ordinary course of business

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9
Q

What are the defences for misleading statements and impressions

A

Belief it wasn’t false or misleading
Conformity with price stabilisation rules
Conformity with control of info rules (Chinese walls)
Share buy-back rules

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10
Q

What is the wider scope of MAR

A 
Applies to FIs- MTF, OTF, OTC if it affects price of value of previous 
Emission allowance 
For market manipulation:
-commodity derivatives 
-commodity spot markets
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11
Q

What are the FCA sanctions for market abuse

A

Withdrawal
Financial penalties
Public statements
Prosecution

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12
Q

What are the statutory exceptions for market abuse

A 
Share buy back
Stabilisation
FCA rules
Takeover code
Market sounding
Accepted market practises (none for the UK)
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13
Q

What is the PDMR trading limit

A

De minimus value of €5000 per calendar year, calculated without netting of transactions

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14
Q

What is the legislation for ML

A

The proceeds of crime act 2002

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15
Q

What are the penalties for ML

A

Concealing, arranging, acquiring/ possessing (14 years/UL fine)
Knowing or prejudicing investigation (5y/ UL fine)
Failure to disclose (5y/ unlimited fine)
Tipping off (2 years/ UL fine)

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16
Q

What are the criminal offences for directors or senior managers

A

Failure to comply with MLR - 2y or UL fine

Recklessly making a statement for ML which is false or misleading- 2 y or UL fine

17
Q

When are identification procedures not required

A
  • Instructions from UK authorised firm
  • Instruction from person in listed MLD (UK, EU or other)
  • Certain transactions worth less than €7500
18
Q

Who do MLRO report to for MAR, insider dealing and misleading statements and impressions

A

FCA

19
Q

Who does MLRO report to for ML and TF

A

NCA

20
Q

What is the legislation for terrorist financing

A

Terrorism Act 2000

21
Q

What activities do suspicions have to be reported for terrorist financing?

A

Provision of funds
Use and possession of funds
Laundering money for terrorist activities

22
Q

What is the penalties for failing to report for terrorist financing

A

5 years or unlimited fine

23
Q

What is the Counter Terrorism Act 2008

A

Gives extra powers to HMT to impose directions on firms suspected of handling funds used for terrorist activities

24
Q

What are the powers of the Counter Terrorism Act 2008 (CTA 08)

A

CDD and monitoring
Increasing identification requirement
HMT can require info without application to courts
Limit of cease business where FATF requires or HMT believes there is significant threat to National interests

25
Q

What is the legislation for Bribery

A

Bribery act 2010

26
Q

What are the offences for bribery

A

Receiving, paying, bribery of foreign officials, failure to prevent bribery

27
Q

What are the defences for bribery

A

Foreign officials- local written law required the payment to be made
Failure to prevent bribery- adequate procedures in place for bribery are shown

28
Q

What are the penalties for bribery

A

Individual- 10 years or unlimited fine

Company- unlimited fine

29
Q

What are the principles for the DPA 2018

A 
Lawful and fair
Specified explicit and legitimate 
Adequate relevant and not excessive 
Accurate and up to date
No longer than necessary 
Secure manner of processing
30
Q

What should you do if DPA 2018 is breached

A

Contact the ICO without delay

If not done within 72 hours, the data controller must explain why

31
Q

What are the penalties for breaches of the DPA 2018

A

4% of the annual turnover
£17.4m
Or whichever is greater

32
Q

What must a data controller provide their subjects with

A 
Purpose of data processing 
Identity and contact details of controller and data protection officer
Existence of rights
Legal basis for processing 
Retention period
33
Q

When should a Public Interest Disclosure (PIDA) 1997 be made

A 
Criminal offence
Breach of legal requirements
Miscarriage of justice 
Endangering health and safety 
Damage to environment
Deliberate concealment of any of the above
34
Q

What legislation is whistleblowing under

A

PIDA 1998

35
Q

What is the whistle blower champion

A
  • Level of independence and authority
  • Resources and info sufficient to do job
  • Doesn’t need to be main job can be anywhere as long as can do function effectively

IAD Level 4 (4 decks)

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