Legislation III Flashcards
What is Money Laundering?
What are the stages?
ML is where proceeds of crime (dirty money) are filtered through the financial system. The stages are:
- Placement: placing illegal funds in deposits and financial instruments
- Layering: processing illegal funds through multiple transactions
- Integration: converting the funds into seemingly legitimate cash
What legislation governs ML?
Criminal liability falls on both the financial institution and the individual employees.
- The Proceeds of Crime Act 2002
- The Money Laundering Regulations 2007
What does the Proceeds of Crime Act 2002 (POCA 2002) entail?
POCA 2002 Lays out how ML offences can be committed in relation to:
- pocession and obtainng criminal property
- Assisting money launderers
- Failing to report suspicions
- Tipping off launderers that they’re under investigation
What does the Money Laundering Regulations 2007 entail?
List instances when firms must pay particular attention.
Criminal liability for ML falls on institutions and individuals. Wrt ML, firms are therefore required to:
- Establish internal control and communication procedures
- provide on-goin training for staff and ensure that they are aware of their obligations
- Introduction of Customer Due Dilligence (CDD) - replacing the ‘know your customer’ of the MLR 2003
Particular attention must be given in instances of:
- New customers: check & ratify their identity through appropriate docs
- Changes of name: proper evidence should be given
- Children’s’ accounts: sometimes used to disguise the origin of funds
- Suspicious transactions: where movements on an account are inconsistent with the customer’s profile
- Lump sum investments: where there is no obvious reason for the customer to have such funds
- Frequent but irregular investments from overseas, possibly indicating tax evasion
What is Customer Due Diligence (CDD)?
- Identifying the customer and verifying the customer’s identity on the basis of reliable info
- Identifying where there is a beneficial owner other than the customer, and taking adequate measures on a risk-sensitive basis to verify their identity.
- Obtaining info on the purpose and intended nature of the business relationship
What legislation concerns data protection?
- Data Protection Act 1984: regulated personal data held mechanically & electronically but not hard copy/manual records
- DPA 1998: repealed DPA 1984: but introduced similar measures applicable to all data
What does the Data Protection Act 1998 entail?
- A data subject is the individual on which personal data is held by a company. They have the right to claim compensation if they incur any losses from companies who breach the Act
- They also have rights to access the info
- have it corrected
- prevent it being processed if it may incur loss
- contact the information commisioner to determine if the data is being processed in compliance with th legislation
- Data contoller: person/org that holds the data
- Data processor: and person/org that processes info on behalf of data controller
- Recipient: any person/org to whom personal data is disclosed
- Information Commisioner: the govn official responsible for regulating the provisions of the DPA 1998
- Data must comply with the 8 principles of data protection
What are the 8 principles of data protection?
- Personal data may not be processed unless the controller complies with the conditions for fair and lawful processing wrt personal and sensitive personal data
- Data must be obtained wrt specific lawful purpose and processed in a manner compatible to that purpose
- Personal data must be adequate, relevant and not excessive
- Personal data must be accurate and up to date
- Personal data mustn’t be retained longer than necessary
- Processing of personal data must be carried out in manner consistent with the rights of the data subject
- The data controller must keep personal data secure
- Where data is transferred outside the EEA the controller must ensure the recipient state has a comparable standard of data protection
List the main employment legislation and what it entails.
- Whistleblowing: Those who blow the whistle are protected by the Public Disclosure Act 1998
- Redundancy: Occurs when job no longer exists. Any employee with 2+ years of continous service is entitled to minimum redundancy payments set by the government
- Maternity/Paternity pay: Mothers/fathers have minimum statutory entitlements (e.g. paid work leave, protection against dismissal, entitlement to maternity leave, a right of return to work)
- Unfair dismissal: Any employee with 1+ years continuous service is entitled to a tribunal if the reason for dismissal is inappropriate. Can lead to compensation, reinstatement or re-engagement.
- Wrongful dismissal: when there has been a breach of contract it can result in the individual receiving damages e.g. dismissed without appropriate notice or pay, or constructively dismissed, where the worked is forced to resign by the unreasonable conduct of the employer or summarily dismissed - dismissed without appropriate notice
- Employment contracts: An employee should be provided with particulars of employment within 2 months of starting the job
- Trade union membership: employees have right to join
- Discrimination: The Equality Act 2010
What are the objectives of the Health and Safety at Work Act?
Health and Safety at Work Act 1974:
- secure health, welfare and safety for people at work
- protect others from risks arising at work
- to control the use and storage of dangerous substances
- control the emission of noxious or offensive substances into the air
What must the emplooyee do wrt HSAWA 1974?
Who are the enforcement bodies?
- Provide info, training and supervision
- issue a policy statement
- consult trade unions where applicable
- establish safety committees
The enforcement bodies are:
- The Health and Safety Executive has the right to enter the premises, examine the premises and question employees in pursuit of h&s objectives
- The Health and Safety Commission is responsible for issuing codes of practice and new regs as well as carrying out general research
What are the Occupier’s Liabilities Act 1957 and 1984?
The 1984 Act extended the provisions of the earlier law by conferring responsibilities on occupiers to persons other than visitors. The occupier may owe a duty of care to any person on the property if:
- The occupier is aware of the danger
- he knows that persons may come into the vicinity of the danger
- it is reasonable that the occupier should be expected to protect the person against the risk
