Money laundering Flashcards
What is money laundering?
Process where criminals convert money obtained illegally into legitimate funds
What are the 3 stages in the money laundering process?
1 - placement- putting cash into financial system and converting it into other financial assets
2 - layering- creating series of complex transactions
3 - integration - criminal actually gets the money
What did the Criminal Justice Act state?
Made it a criminal offence to launder gains from other crimes
Also stated you don’t have to be involved in doing money the actual money laundering itself - assisting a criminal, having knowledge of someone doing money laundering or tipping off a suspected person is an offence
What did the Proceeds of Crime Act state? (POCA)
Act set up an Assets Recovery Agency with financial investigators whose purpose was to recover the proceeds of criminal activity + extends range of offences for money laundering
What does the Serious Crime act state (2007/2015)?
2007 - extended range of serious crime prevention orders
2015 - helps ensure police etc have powers needed to deal with criminals
EU money laundering regulations;
Money Laundering Regulations 1993
Money Laundering Regulations 2017
1993 - foundational piece of legislation which requires creation and maintenance of systems to prevent money laundering
2017 - extends legislation to cover a wider range of businesses
How is “financial crime” defined?
Fraud, dishonesty misconduct or misuse of information
What is an MLRO?
Money laundering reporting officer - responsible for firms compliance with rules expected to be based in the UK and have a level of authority/independence within firm
Who are the JMLSG?
Joint money laundering steering group - issue guidelines on money laundering around client identification/verification and appropriate systems and controls
Who is responsible for detection and prevention of money laundering?
FCA
Under money laundering regulations when should proof of identity be obtained?
Before any transactions are complete
What are the 4 criminal offences if the bribery act 2010?
Giving, offering a bribe
Requesting/agreeing to a bribe
Bribing a foreign public official
Failure by a commercial company to prevent bribery committed on its behalf (biggest concern)
Under the guidelines of the JMLSG what documents are needed to verify a client?
Passport
Valid photo card/driving licence
National identity card
Firearms certificate
Shotgun licence
Identity card issued by electoral office for Northern Ireland
Under the guidelines of the JMLSG what documents are needed to verify a client?
Passport
Valid photo card/driving licence
National identity card
Firearms certificate
Shotgun licence
Identity card issued by electoral office for Northern Ireland
How often must companies report on their systems/controls to prevent money laundering?
At least annually
