Executive Summary - Part 2A of the Legal Sector Affinity Group Anti-Money Laundering Guidance Flashcards
What does the guidance address?
the issues raised for barristers and advocates by Part 7 of the Proceeds of Crime Act 2002 as amended by the Money Laundering Regulation 2017
What is money laundering?
the process whereby the proceeds of crime are changed or disguised so as to hide their unlawful origin.
What is terrorist financing?
the raising, moving, storing and using of financial resources for the purposes of terrorism.
What is the duty of barristers in relation to money laundering?
it is the duty of every barrister and advocate to understand the principles of money laundering and terrorist financing and how to recognise them.
What is a barristers obligations to not become involved in?
every barrister and advocate owes an obligation not to become involved in money laundering or terrorist financing.
What are the money laundering offences?
- concealing, disguising, converting or transferring the proceeds of crime or removing the proceeds fo crime from the jurisdiction
- entering into or becoming concerned in an arrangement that facilitates the acquisition, retention, use or control of criminal property.
- the acquisition, use and possession of criminal property
- making an unauthorised discourse or taking an action or causing an action to be taken that is likely to prejudice an investigation.
what are the terrorist financing offences:
- fund-raising for terrorism
- use or possession of property for terrorism.
- entering into or becoming concerned in an arrangement that makes property available for the purposes of terrorism
- making a payment under a contract for insurance against a payment made in response to terrorist demands.
- entering into or becoming concerned in an arrangement that facilitates the retention or control of terrorist property
- failing to disclose a suspicion obtained int he course of a trade, profession or business of the commission of a terrorist financing offence.
Do the provisions of POCA and TA override a client’s legal professional privilege?
no.
if you have any disclosures to make, can you make them despite LPP?
NO.
Do you have to undertake Customer Due Diligence?
yes
Do you have to keep a record of the CDD that you carry out?
Yes you MUST keep a record.
when are you required to renew you due diligence?
where:
1. you come under a legal duty in the course of a calendar year to contact an existing client to review information that is:
a. relevant to your risk assessment for that client; and
b. relates to the beneficial ownership information of the client, including information which helps them to understand the ownership or control structure of any entity that is in the beneficiary owner of the client; or
c. you have to contact an existing client in order to fulfil any duty under the International Tax Compliance Regulations (2015).
How should you address your due diligence obligations?
you must take a risk-based approach. The measures you take must be sufficient to meet the perceived level of risk.
What are some potential indicators of money laundering?
- the lay client being based in a high-risk country or region
- the nature of the business operated by the lay client
- the source of funds involved in the transaction or the personal circumstances of the lay client or someone involved in your instructions.
Can you rely on the CDD of another person.
Yes, where you act upon the instructions of a professional client, with their consent you can rely on the CDD they have carried out. However, you remain legally responsible for the regulatory compliance of the checks undertaken
