Criminal Law Flashcards
What 3 criminal offences does the Proceeds of Crime Act create?
Money laundering
Failure to report suspicion of money laundering
Tipping off
What is money laundering and what are some examples?
Proceeds of crime converted into assets which have a seemingly legitimate source.
Smuggling, drugs, tax evasion, bribery
Buying luxury goods, overpaying tax, cash based business, depositing funds then asking for repayment
What are the red flags for money laundering?
Unusually large/frequent transactions
Cash deposits that can’t be justified
Large increase in account balance
Transferring large amounts of money
Unwillingness to discuss business activities
Inconsistencies in information
What are the penalties for the 3 criminal offences?
Money laundering - 14 years prison/ unlimited fine
Failure to report - 5 years prison/unlimited fine
Tipping off - 2 years prison/unlimited fine
What are the Money Laundering Regulations 2017?
Enforces record keeping, client due diligence, staff training
Allows suspicious transactions to be recognised and reported, provides an audit trail
Non-compliance - unlimited fine/ 2 years prison
What are the requirements for the Money Laundering Regulations 2017?
Record keeping
Whole firm risk assessments
Internal controls
Training
Identification of politically exposed persons
Processes for reliance on 3rd parties
Due diligence
When do the rules apply and what is involved in customer due diligence?
Establishing new relations, providing business formation services, occasional transactions, suspected terrorism/ML, accountant doubts veracity of info
Identify customers, beneficial owners and those with significant influence, obtain info on nature/purpose of business, identify who has ultimate control
When is confidentiality overwritten?
When there is a legal duty to report suspected money laundering
What are the money laundering reporting requirements?
Report to MLRO/NCA
Must be more than speculation - need some evidence
Report to Companies House if discrepancies in people
What 4 offences does the Bribery Act 2010 create?
Bribing another person
Being bribed
Bribing a foreign public official
Corporate failure to prevent a bribery
What is the punishment for bribery and/or fraud?
unlimited fine or 10 years prison
In what 3 ways can fraud be committed?
By false representation - dishonesty
By failing to disclose info
By abuse of position - not acting in the safeguarding manner
It is to make gain/cause loss
What acts are included in cybercrime?
Phishing
Webcam manager
File hijacker
Keylogging
Screenshot manager
Ad clicker
What are the 6 forms of cyber-fraud?
Electronic financial fraud - false banks getting you to transfer money
Sales through auction - bogus websites which won’t provide/ provides counterfeit goods
Phishing scams - emails to fish for personal info
Pharming - fake websites to put in personal info
Social media scams - long-term relationships get to transfer money
What controls have the government put in place to protect against cybercrime?
Firewalls - secure internet connection
Secure configuration settings
Physical and network access controls
Virus and malware protection software
Latest updates to software installed
What are the 4 key points of the accountancy voluntary agreement?
Improved info regarding fraud
Fraud awareness toolkit
Enhancing companies house data
Increase fraud awareness and change customer behaviour
What is now illegal under the Computer Misuse Act?
Unauthorised access to computer system/intent to commit other offences/intent to impair operation of computer
Unauthorised acts causing/creating risk of serious damage
Making/suppling articles to spread viruses/malware
What is involved in the criminal offence of fraudulent trading?
Whether or not company in liquidation
Any person who knowingly a party
Positive act and dishonesty
Test is subjective and concerned with state of mind
Court may disqualify guilt party up to 15 years from acting as director or management
Punishable by unlimited fine/ 10 yrs prison
What is involved in the civil offence of fraudulent trading?
Applies only if in liquidation
Liquidator will ask court to get person to pay contribution to the funds
What 3 offences are created by the Criminal Justice Act 1993?
Dealing with securities while in possession of inside information as an insider - securities price-affected info
Encouraging another to deal in them
Disclosing information other than in proper performance of employment
What terms are involved in insider dealing?
Dealing - acquiring/disposing of securities
Encouraging dealing - having information and encouraging others to deal whether or not they know if its price-affected/they actually deal
Securities - shares, debt securities and warranties
Inside information - price sensitive info that has a significant effect on price, not public, specific and precise
Insider - A person has inside information from an inside sources
What are the defences to insider dealing?
Did not expect profit or avoidance of loss
Reasonable grounds to believe info disclosed widely
Would have done action if he hadn’t had the info
Did not expect another person to deal
What is the penalty for insider dealing?
7 years prison or unlimited fine
What is market abuse?
Failure to observe standard behaviour reasonably expected of a person in their position in the market
What is the Economic Crime Act 2022?
Establishing overseas entities
Strengthens ability of NCA to use unexplained wealth orders
Strict civil liability party to sanctions-busting transactions
What are the steps taken for an ethical problem?
Check facts
Report to person with accordance with legal requirements
Guidance from ICAEW
Legal advice
Preliminary discussions with senior work colleagues
Advice from ICA Ethics Advisory Service
What is the ICAEW code of ethics?
Integrity, Objectivity, Confidentiality, Professional behaviour, professional competence and due care
What are the safeguards for ethical issues?
Corporate oversight, training, ethical people, checks, deterrent, tone from the top, ensure not a toxic environment, document policies, monitor client revenue, communication, separate engagement teams
What are the 5 threats to ethical issues?
Self-interest, Self-review, advocacy, familiarity, intimidation
What is whistleblowing?
Workers making a disclosure of wrongdoing by their employer not necessarily of criminal nature
What are examples of things to whistleblow, who does it apply to and what must the disclosure be?
Lack of promotion, lack of training, unjustified disciplinary action, pay issues/failure to renew contracts, dismissed after making a disclosure
Applies to everyone apart from self-employed and volunteers
Disclosure must be qualifying, not for personal gain, made not appropriate person
When is a disclosure a qualifying disclosure?
Reasonable belief information shows one of:
Criminal offence
Failing with a legal obligation
Miscarriage of justice
Health and safety endangered
Environment damaged
Information likely to be concealed
When must a disclosure be made?
In the public interest
If not in good faith reduce compensation by 25%
Who should the disclosure be made to?
Internal - employer/responsible person
Legal advisor
Minister of the Crown
Bodies prescribed to the Secretary of State
Media, police, MPs
What is a gagging clause?
Clause in an employment contract or severance agreement which restricts worker’s right to make disclosures - conflicting with Act makes it void
