Lesson 2: Taxation Services Flashcards
What is the International Federation of Accountants (IFAC)?
Global organisation for the accountancy profession
Works with 167 members in 127 countries to protect the public interest by encouraging high quality practices
Represents 2.5 million accountants
What is the International Ethics Standards Board for Accountants (IESBA)?
Responsible for setting basic ethical code for accountants that underlines the ethical codes of various accounting bodies, e.g AAT
Develops high quality ethical standards around the world
Requires quality and consistency in order to serve the public interest
What is the Public Interest Oversight Board (PIOB)?
Oversees public interest cases for IFAC
Its purpose is to increase confidence of investors and others that the activities carried out by IFAC and IESBA are responsive to the public interest
Transparent as meetings are open to the public
What is money laundering?
This is where the proceeds of crime are converted into assets which appear to have a legitimate origin so they can be retained or recycled into more criminal activity.
What legislation is there in relation to money laundering?
Money Laundering Regulations 2007
Proceeds of Crime Act 2002
Terrorism Act 2000
What is a money laundering reporting officer (MLRO)?
They are a person within a firm of accountants who has been nominated to receive and assess internal reports of knowledge or suspicions of money laundering or terrorist financing.
What happens if the member is employed by a business that does not have a MLRO?
The member must make a suspicious activity report (SAR) directly to the Serious Organised Crime Agency (SOCA).
What is ‘tipping off’?
This occurs when a person, who knows or suspects that a Suspicious Activity Report has been made to SOCA, tells the person(s) mentioned in the report that the report has been made. This lets them know that SOCA is about to make an investigation.
What is prejudicing an investigation?
This occurs where a person:
- knows or suspects that a money laundering, confiscation of civil recovery investigation is being conducted or is about to be conducted; and
- they make a disclosure that will likely prejudice the investigation; or
- they falsify, conceal or destroy documents relevant to the investigation
What are the penalties?
Money laundering / terrorist financing - 14 years in prison and unlimited fine
Tipping off - 2 years in prison and unlimited fine
Failure to disclose - 5 years in prison and unlimited fine
Prejudicing an investigation - 5 years in prison and unlimited fine
