Legal Services

Question 1

Placement

Answer 1

first stage of money laundering, putting cash from crime into financial system

Question 2

Layering

Answer 2

Obscuring the origins of the proceeds of crime by passing them through complex transactions
goal: lose the audit trail

Question 3

Integration

Answer 3

Making funds appear legitimate
investing funds into legitimate businesses or investments

Question 4

Conditional fee agreement

Answer 4

if client succeeds, sol gets their standard time costs (which can be recovered from losing party along w disbursements) plus a success fee
Success fee is a percentage of standard time costs payable by client out of the recovery
success fee cannot exceed 100% of normal fee charged

if nothing recovered, sol not entitled to costs but client may have to pay opponent’s costs and disbursements and pay for sol’s disbursements

Question 5

Damages based agreement

Answer 5

If client succeeds, sol gets percentage of client’s recovery regardless of sol’s normal fee and amount of disbursements

sols costs cannot exceed 25% in personal injury or 50% in other cases

sol gets nothing if client not successful

Question 6

Concealing

Answer 6

knows or suspects they are concealing, converting, transferring or removing from the UK criminal property
including concealing source or location

defences: made disclosure to nominated officer before the transaction, or disclosed after transaction with good reason for delay

Question 7

Arranging

Answer 7

sol knows or suspects they are facilitating acquisition, retention, use or control of criminal property on or behalf of another person

Question 8

defence to acquisition, possession or use of criminal property

Answer 8

took the property in good faith as adequate consideration

Question 9

regulated activity

Answer 9

activity specified under FSMA relating to a specified investment carried on in the course of business

Question 10

specified activities

Answer 10

advising (on merits of particular investment)
arranging (for purchase or sale of investment)
managing (assets of another when discretionary authority exists)
dealing as an agent (buying or selling investments)
safeguarding (assets belonging to another and administering them)

Question 11

specified investments

Answer 11

shares, pension schemes, insurance contracts, funeral plans, mortgage contracts and debentures

(land and premium bonds are not specified investments)