Lesson 24 anti - money laundering

Question 1

What is the proceed of crimes act?

Answer 1

1. Makes money laundering a crime
2. Also a crime to conceal or tip off someone laundering money.

Question 2

Who is a PEP

Answer 2

A PEP is a politically exposed person who is at risk of laundering money because people can blackmail them.

Question 3

What is meaant by placement, layering & Integration.

Answer 3

Placement - Is putting laundered money into a system i.e a bank.

Layering - Is taking that money from the bank and buying a house. So yyou are putting it into something else.

Integration - Is selling the house and putting the now clean money into something else.

Question 4

What are the 7 steps that businesses should put in place to reduce the risk of money laundering?

Answer 4

1. Risk assess.
2. Put procedures in place.
3. Train staff.
4. Customer due diligance (take id).
5. Categorise risks.
6. Have an audit trail.
7. Have a money laundering compliance prinipal who deals with the staff and the FCA.

Question 5

What are the consequences of money laundering?

Answer 5

Fine and 2 yrs in prison.
Old way was 14yrs in prison.