Money Laundering Flashcards
1
Q
What legislation is there which govern money laundering?
A
- Proceeds of Crime Act 2002
- Money laundering Regulations 2007
2
Q
Three primary offences of money laundering?
A
- Concealing
- Arranging
- Acquisition use of possession
3
Q
What is the purpose of client money handling procedures?
A
- Client money kept safe
- Accounts are used for appropriate purposes only
- Firms have appropriate controls & procedures to safeguard that money
4
Q
What should a procedure for handling client money contain?
A
- How and where client money is held
- Access to funds being restricted to senior employees
- Timescales for payment of cash and cheques into client accounts
- How interest & charges are dealt with
- What info needs to be provided to client and monies held & frequency of report
5
Q
What is the Client Money Protection Scheme?
A
- Set up by the RICS
- Protection for clients in instances where a RICS regulated firm is unable to repay Clients money
- Compensates client if their money has not been handled correctly
- Every RICS regulated firm who handles client money must be part of the scheme
6
Q
How would you handle Client’s money?
A
- Check its source, need to understand if the money is legitimate / legal
- Ensure my firm is registered with RICS money handling scheme
- Set up a separate bank account, name of Client / property name
- Written notice from the bank that this is a client account
- Agree process of interest with the client
- Agree drawdown schedule
- Ensure cash is always available to the client
- Ensure that the account is never overdrawn
7
Q
What is the Money Laundering Act?
A
