Legal Considerations Flashcards
What is a reputational risk
Threat to the way the company is perceived
What is the litigation risk
Damage as a consequence of legal action
What is a process risk
Resulting from poorly designed business processes
What is the people risk
Losses resulting from human error or deliberate actions
What is a systems risk
Losses resulting from poorly designed systems
What is an event risk
Threats from a one off incident such as fire
What is criminal law
The enforcement of particular forms of behaviour by the state which acts to ensure compliance
What is civil law
To settle disputes between individuals and to provide remedies
What is money laundering
Criminally obtained money or assets which are exchanged for clean money
What are the three phases of money laundering
Placements
Layering
Integration
What is the procedure for reporting money laundering
Submit a suspicious activity reports (SAR)
Airport to your money laundering reporting officer (MLRO)
Advise the NCA if no money laundering reporting officer
What is protected disclosure
Person is protected against allegations of breach of confidentiality
What is authorised disclosure
This may provide defence against charges of money laundering provided it is made before the act is carried out
What is tipping off
Telling the potential offender of money laundering necessary authorities have been informed.
Disclose anything that might prejudice an investigation.
What is the penalty for tipping off
Maximum five years imprisonment and/or unlimited fine.
What is due diligence
Customer due diligence must be applied to all clients before services are provided to them.
What are the three elements to customer due diligence for new clients.
Find out who the client claims to be.
Satisfy you know who the beneficial owners are.
Obtain information on the purpose and intended nature of the transaction.
What is whistleblowing
Disclosing information that is evidence of illegality gross waste, waste mis-management abuse of power and specific danger to the public health and safety.
What are the operational risks?
Reputational risk Litigation risk Process risk People risk Systems risk Event risk
