Money Laundering

Question 1

What is money laundering?

Answer 1

involves financial transactions which proceed from serious crime eg drug trafficking, terrorism, theft etc are cleaned so that its source is harder to trace.

Question 2

How can a solicitor be at risk of money laundering?

Answer 2

• client deposits cash in the firm’s client account solely for a transmission to a third party
• acquiring property, investing in a business or buying an asset using CASH
• client using a firm’s client account and dirty cash to disguise the audit trail

Question 3

What are 2 obligations to carry out when u start acting for a client in relation to money laundering?

Answer 3

• Customer Due Diligence
• Ongoing monitoring