`Criminal Law

Question 1

what is whistleblowing?

Answer 1

reporting wrongdoing within an organisation

Question 2

Public Interest Disclosure Act in certain circumstances the law gives protection to workers. For this protection to be awarded, they must make:

Answer 2

• a qualifying disclosure of information
• in the public interest
• to the appropriate person.

Question 3

what are the two fraud requirements?

Answer 3

• Dishonesty
• Intention to make a gain

Question 4

Fraud by false representation

Answer 4

Fraud by making a false statement of fact or law

Question 5

Fraud by failure to disclose information

Answer 5

If have a legal duty to disclose information but fail to do so

Question 6

Fraud by abuse of position

Answer 6

expected to safeguard the interests of another person and abuses that position making a gain for him/herself

Question 7

Maximum penalties for fraud

Answer 7

• Unlimited fine
• 10 years imprisonment

Question 8

Penalties for fraudulent trading
- Civil liability
- Criminal offence

Answer 8

• Civil liability - disqualification of director upto 15 years
• Criminal offence - 10 years imprisonment or unlimited fine

Question 9

Insider dealing

Answer 9

Occurs when an individual trades in shares on which they have insider information
- first offence, second offence and final offence

Question 10

Penalties for insider dealing:

Answer 10

• Criminal offence - up to 7 years imprisonment or unlimited fine
• Other consequences - transaction may be valid but director liable to pay for any profits made

Question 11

Three bribery offences:

Answer 11

• bribing another person
• being bribed
• bribing a foreign public official

Question 12

what is money laundering?

Answer 12

any activity by which the apparent source and ownership of the proceeds of the crime are changed in such way that the cash or other assets appear to have been obtained legitimately

Question 13

what are the three phases of money laundering?

Answer 13

• Placement
• Layering
• Integration

Question 14

4 money laundering offences:

Answer 14

• Money Laundering
• Failure to report
• Tipping off
• Inciting another to launderer

Question 15

Penalty for failure to report money laundering

Answer 15

5 years imprisonment and unlimited fine

Question 16

Penalty for tipping off

Answer 16

2 years imprisonment and unlimited fine

Question 17

Two purposes of the Money Laundering Regulations 2017:

Answer 17

• to enable suspsicious transactions to be reocrded and reported
• to ensure that if a client comes under investigation in the future and audit trail can be provided

Question 18

Under the MLR relevant persons are required to take a risk- based approach to money laundering. This requires the firm to:

Answer 18

• Carry our whole firm risk assessment to analyse the business’ exposure to the risk of money laundering
• Put policies and controls in place to mitigate perceived risks
• Customer due diligence

Question 19

Penalty for non compliance

Answer 19

fine or up to two years imprisonment

Question 20

what are the two acts for whistleblowing?

Answer 20

• Public Interest Disclosure Act 1998
• Employment Rights Act 1996

Question 21

what is market abuse

Answer 21

under civil law than criminal law and used if cant prove insider dealing as high standard of proof is required
- wider ranging offence

Question 22

two legislations for money laundering

Answer 22

• Proceeds crime act 2002 - offences and penalties
• Money laundering regulations - duties

Question 23

customer due diligence

Answer 23

• identify customers and their agents
• obtain info on the business relationship

Question 24

what is sphear phishing

Answer 24

form of phishing which is more targeted

Question 25

what is pharming

Answer 25

use website to obtain personal details

Question 26

what does the computer misuse act relate to?

Answer 26

creates offences related to the unauthorised access or change to computer material. Prison or fine

Question 27

which act governs the law on whistleblowing?

Answer 27

public interest disclosure act 1998