Money Laundering Flashcards
What are the direct offences under the Proceeds of Crime Act?
- Concealing, transferring or removing criminal property out of the UK
- Arranging transactions in respect of criminal property
- Acquiring or using criminal property
What are the defences to direct offences?
Where there has been an authorised disclosure before the offence (or during, as long as it was made once found out and on their own initiative; or after, if there is good reason for the delay)
For acquiring criminal property: bona fide purchaser with value and without notice
What are the indirect offences under Proceeds of Crime Act?
- Tipping Off - D is allowed to share information with a) legal professionals on the same matter and b) other employees within the Company’s group, both of which are within the EEA; c) regulatory authorities, and d) the client to persuade them to cease money laundering
- Failure to make suspicious activity reports as soon as possible - delay can only be because they are taking legal advice (which they requested for promptly)
- Prejudicing investigations - except where D genuinely thought there was no prejudicing (that the client is innocent)
What money laundering requirements are there under the ML Regulations?
- Conduct KYC
- Appoint a money laundering reporting officer within the firm, who is responsible for making suspicious activity reports to the NCA, and for training up staff internally
Does a sole lawyer require a MLRO?
No
When is KYC required?
At the outset of a business, for a transaction worth 15,000 EUR or above, where there are suspicions of money laundering or terrorist financing, or where there is suspicions in relation to authenticity of documents provided
How long do KYC documents need to be retained for?
5 years
Is there any way to skip KYC?
Where there is little risk of money laundering, and there is a business need - NOT for transaction of 15,000 EUR or more
