`Criminal Law Flashcards
what is whistleblowing?
reporting wrongdoing within an organisation
Public Interest Disclosure Act in certain circumstances the law gives protection to workers. For this protection to be awarded, they must make:
- a qualifying disclosure of information
- in the public interest
- to the appropriate person.
what are the two fraud requirements?
- Dishonesty
- Intention to make a gain
Fraud by false representation
Fraud by making a false statement of fact or law
Fraud by failure to disclose information
If have a legal duty to disclose information but fail to do so
Fraud by abuse of position
expected to safeguard the interests of another person and abuses that position making a gain for him/herself
Maximum penalties for fraud
- Unlimited fine
- 10 years imprisonment
Penalties for fraudulent trading
- Civil liability
- Criminal offence
- Civil liability - disqualification of director upto 15 years
- Criminal offence - 10 years imprisonment or unlimited fine
Insider dealing
Occurs when an individual trades in shares on which they have insider information
- first offence, second offence and final offence
Penalties for insider dealing:
- 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
Three bribery offences:
- bribing another person
- being bribed
- bribing a foreign public official
what is money laundering?
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
what are the three phases of money laundering?
- Placement
- Layering
- Integration
4 money laundering offences:
- Money Laundering
- Failure to report
- Tipping off
- Inciting another to launderer
Penalty for failure to report money laundering
5 years imprisonment and unlimited fine
Penalty for tipping off
2 years imprisonment and unlimited fine
Two purposes of the Money Laundering Regulations 2017:
- 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
Under the MLR relevant persons are required to take a risk- based approach to money laundering. This requires the firm to:
- 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
Penalty for non compliance
fine or up to two years imprisonment
what are the two acts for whistleblowing?
- Public Interest Disclosure Act 1998
- Employment Rights Act 1996
what is market abuse
under civil law than criminal law and used if cant prove insider dealing as high standard of proof is required
- wider ranging offence
two legislations for money laundering
- Proceeds crime act 2002 - offences and penalties
- Money laundering regulations - duties
customer due diligence
- identify customers and their agents
- obtain info on the business relationship
what is sphear phishing
form of phishing which is more targeted
what is pharming
use website to obtain personal details
what does the computer misuse act relate to?
creates offences related to the unauthorised access or change to computer material. Prison or fine
which act governs the law on whistleblowing?
public interest disclosure act 1998
