Legal Services - Money Laundering Indirect Offences

Question 1

Failure to Report

Answer 1

Solicitor SHOULD know or suspect or has reasonable grounds to know or suspect. A Suspicious Activity Report (SAR) needs to be reported to the Nominated Officer or the National Crime Agency.

Any information coming to the solicitor in the course of business.

Defences: privileged circumstances, lack of training

Question 2

Tipping Off

Answer 2

Disclosing investigation or SAR to an offender or third person orally or in writing if that disclosure might predjudice any investigations

Exceptions: normal enquiries about instructions and the retainer

Defences: permitted disclosures to another legal professional

Question 3

Prejudicing an Investigation

Answer 3

Making disclosure that prejudices or obstructs investigation

Defences: did not know or suspect

Question 4

The Money Laundering, Terrorist Financing and Transfer of Funds (Transfer on Payer) Regulations 2017

Question 5

Nominated Officer/Money Laundering Reporting Officer (MLRO)

Answer 5

Point of contact for reporting suspicions and decide whether to pass concerns on to authorities. Solicitor must ensure that their report actually reaches MLRO. If the MLRO or deputy MLRO are not available or solicitor does not work in a firm, solicitor must report directly to NCA

Question 6

Customer Due Diligence

Answer 6

Process of verifying a client’s identity

Should be completed:

• When solicitor first establishes business relationship with client;
• Any time the solicitor suspects money laundering or terrorist financing;
• Any time the solicitor has reason to doubt the veracity of documents or data previously submitted by the client; and
• There is an occasional transaction (€15,000 or more in any transaction)

Due diligence records should be retained for 5 years.

Question 7

Occasonial Transaction

Answer 7

15,000 euros or more in a single operation or several operations which appear to be linked