Chapter 8 - money laundering Flashcards
What is placement in money laundering
Moving the money into a legitimate financial system, such as a bank account
What is layering in money laundering
Creating a complex web of transactions to move money around the financial system
What is integration in money laundering
Integrating illegal funds back into the legitimate financial system, such as by investing in property or other assets
What does POCA stand for and set out?
Proceeds of crime act 2002
sets out principle money laundering offences and requirements
What does TA stand for and do?
Terrorism act 2000
sets out principle terrorist financing offences
What does MLR stand for and do?
Money laundering and terrorist finance regulations 2020
More detailed rules including what accountants should do with money laundering
What is the punishment for money laundering?
Unlimited fine and/or a prison sentence of up to 14 years
What is the punishment for terrorist financing?
Unlimited fine and/or a prison sentence of up to 14 years
What are the two circumstances when a required disclosure must be made in an internal report or an SAR?
When the accountant wishes to provide services that are in relation to property which is known or suspected to relate to money laundering
When the accountant knows or suspects that another person is engaged in money laundering or terrorist financing
What are the four minimum points an SAR must contain?
Identity of the suspected person like name and DOB
Information on which the suspicion of money laundering is based
The whereabouts of the laundered property
Details of the person making the report
What is a protected disclosure?
When a required disclosure is submitted, this protects the person against allegations of a confidentiality breach
What is an authorised disclosure?
When anyone realises they may have engaged or about to engage in money laundering, this provides them with a defence against money laundering charges
What is concealing in money laundering?
Concealing or disgusing criminal property
What is arrangement in money laundering
When a person enters into an arrangement which they know or susepcts faciliates the acquisition of criminal property
What is acquisition in money laundering?
If a person aquires or has use of criminal property