criminal law & business

Question 1

what are some examples of business crime?

Answer 1

• corporate manslaughter
• criminal cartels
• fraud
• bribery
• money laundering
• tax evasion

Question 2

who are the UK enforcers for general crime?

Answer 2

police, CPS (crown prosecution service) & SEOCID

Question 3

who are the UK enforcers for organised crime?

Answer 3

NCA, ICU, JMLIT

Question 4

who are the UK enforcers for insider dealing?

Answer 4

FCA

Question 5

who are the UK enforcers for serious fraud?

Answer 5

SFO

Question 6

who are FATF?

Answer 6

financial action task force

Question 7

why is the FATF useful?

Answer 7

have website for advice for vulnerable and exposed professions (accounting, legal etc.) to money laundering. various exercises & training practices to help avoid becoming involved or not detecting ML.

Question 8

who are transparency intl and why are they useful?

Answer 8

organisation who provide corruption perceptions index on a heat map, making it easy & quick to identify where more due diligence may be needed.

Question 9

what is CDD?

Answer 9

client / customer due diligence

Question 10

what is EDD?

Answer 10

enhanced due diligence. where more thorough steps are taken to do due diligence. especially done on PEPs (politically exposed persons) & red flag countries.

Question 11

what is the difference between reporting suspicions and tipping-off?

Answer 11

reporting suspicions involves personal & legal obligations to inform authorities about suspicious activities. (SARS)
tipping off is the obligation to keep quiet & not inform clients that they are being investigated. (POCA 2002)

Question 12

why do AML & ABC systems need to be up to date?

Answer 12

huge fines for not keeping systems up to date. can also act as protection if ML does happen, and systems are up to date, can get the firm out of trouble even if systems failed.

Question 13

what does the bribery act 2010 s7 state?

Answer 13

failing to prevent bribery. company fails to prevent bribery committed anywhere by person associated with it.

Question 14

what is the defence against s7 bribery act 2010?

Answer 14

company must prove it has adequate procedures designed to prevent the bribery

Question 15

what does the criminal finances act 2017 relate to?

Answer 15

failure to prevent employees, agents & associated persons from facilitating tax evasion in UK or abroad.

Question 16

what are the 5 types of market abuse?

Answer 16

• spoofing
• wash trades
• painting the tape
• insider dealing
• unlawful disclosure

Question 17

why is fraud easier to prove now?

Answer 17

• definition of dishonesty has a lower threshold than in the past (due to Ivy v Gentings Casino)
• offence doesn’t have to be successful to actually have committed the offence

Question 18

give 5 examples of defences for an FTP bribery offence.

Answer 18

• good risk assessments
• due diligence
• training & monitoring
• reporting procedures
• top-level commitment
• legal advisor
• compliance audit