Legal Services - Money Laundering Direct Offences

Question 1

Placement

Answer 1

Money enters financial system

Question 2

Layering

Answer 2

Money’s origin is concealed

Question 3

Integration

Answer 3

Provide legitimacy to criminally obtained funds

Question 4

Direct Offences

Answer 4

Party directly involved in money laundering activities

Solicitor MUST know or suspect the money/property has been obtained through criminal conduct

Question 5

Indirect Offences

Answer 5

Failure to comply with AML obligations

Question 6

Predicate Offence

Answer 6

Assumption that a criminal offence has occurred to generate property now being laundered

Question 7

Principal money laundering offences

Answer 7

Concealing, arranging and acquiring/using/possessing

Max penalty is 14 years in prison and/or unlimited fine

Question 8

Concealing

Answer 8

Must subjectively know or suspect that property represents benefit from criminal conduct

Defence: “authorised disclosure” of transfer to police (NCA), customs officer or Nominated Officer - disclosure must be made before the prohibited act started (subject to a number of exceptions)

Exceptions to duty to disclose: if LPP applies. However, if solicitor knows that transaction **will **constitute a ML offence then LPP does not apply. If solicitor suspects and suspicions are correct LPP does not apply. If suspicions are unfounded then LPP applies.

Question 9

Arrangements

Answer 9

Arrangements which the defendant knew or suspected facilitated the acquistion, retention, use or control of criminal property

Same defences as for concealing

Question 10

Aqusition, use and possession

Answer 10

Possession means having physical custody

Solicitor must know or suspect

Same defences apply as for concealing and arranging. Extra defence of reasonable consideration - if paid a reasonable amount, in good faith, for an item you did not know was stolen. Suspicion negates offence