money laundering

Question 1

what is money laundering?

Answer 1

• offences involving proceeds of crime or terrorist funds
• includes possessing, dealing & concealing proceeds of crime
• tax evasion falls within this

Question 2

what is the AML procedure?

Answer 2

1. register with appropriate supervisory body (ICAEW, ACCA)
2. appoint a money laundering reporting officer (MLRO)
3. if suspect client of ML, make internal report to MLRO
4. MLRO decides whether to escalate to NCA & submits suspicious activity report

Question 3

how can firms prevent money laundering?

Answer 3

verify identity of new clients & retain relevant documents for 5yrs after termination of client rs

Question 4

what are the consequences of money laundering?

Answer 4

found guilty of money laundering, failure to report ML or tipping client off can result in :
- unlimited fines
- up to 14yrs for main ML offences
- up to 5yrs for failure to report
- up to 2yrs for tipping client off