Money Laundering

Question 1

What is the necessary mental state for a solicitor to have committed the offence of concealing under POCA?

Answer 1

Subjective test: the solicitor must have actually known or suspected the purchase money represented a benefit from criminal conduct.

Question 2

What is the necessary mental state for a solicitor to have committed the offence of

Answer 2

Objective test: the solicitor should have known or been suspicious that money laundering was taking place.

Question 3

What is the definition of a regulated activity under RAO?

Answer 3

A regulated activity is defined as an activity specified in the Regulated Activities Order 2001 relating to an investment specified in the Order, which is carried out in the course of business, and to which no exclusions apply.

Question 4

How long are firms required to keep records of MLRO investigations / customer due diligence

Answer 4

5 years

Question 5

What penalties may solicitors face for one of the money laundering offences?

Answer 5

14 years imprisonment or an unlimited fine

Question 6

What are the direct money laundering offences?

Answer 6

Concealing
Arranging
Acquisition, Use, Possession

Question 7

What is the crime of concealing?

Answer 7

When a person conceals, disguises, converts, or transfers criminal property or removes it from the UK

Question 8

What is the ‘mens rea’ for the offence of concealing?

Answer 8

Subjective: that the person knew or suspected that the criminal property represented a benefit from criminal conduct

Question 9

What are the defences to concealment?

Answer 9

That the person made an authorised disclosure of the transfer to the police