Money Laundering Flashcards
What is the definition of money laundering?
Move illgeally accquired cash through financial systems to make it seem legally accquired cash
What are the three stages of money laundering?
Placement - Moving the money into a legitimate financial system
Layering - Creating complex transaction to move the money around
Integration - Integrate the illegal funds back into the legitimate financial system
Name examples of money laundering?
Acquiring, using, or possessing criminal property
Handling proceeds of a crime such as theft, fraud and tax evasion
Being knowingly involved with criminal or terrorist property
What is terrorist property?
Money or property likely to be used for terrorist purposes
Name 3 acts for anti money laundering legislations?
Proceeds of crime act 2002
Terrorism Act 2000
Money Laundering and Terrorist Financing regulations 2020
What is the National Crime Agency?
Crime fighting law enforcement agency responsible for proactive operations aganinst serious and organised crime
What is the maximum fine for money laundering,failure to report and tipping off?
Unlimited fine and/or up to 14 years in prison
Failure to report - max 5 years and/or unlimited fine
Tipping off - max 2 years and/or unlimited fine
Who should money laundering be reported to?
NCA if the business doesnt have a Money Laundering Reporting Officer (MLRO), if a business has a MLRO then the matter should be reported to them.
What is the maximum penalty for terrorist financing?
Unlimited fine and/or up to 14 years in prison
What must a SAR contain?
Identify the suspected person
Information on which the suspicion of money laundering originated from
The where-abouts of the laundered property if known
Detials of the person making the report will be MLRO or sole practisioner
What is a required disclosure?
Disclosure of money laundering must be made when an accountant knows or suspects money laundering on behalf of a client
What are the two circumstances where a required disclosure must be made by an accountant?
When the accountant wishes to provide services to a client which is related to or suspected to relate to money laundering. In such circumstances the person making the report is asking for consent to proivde services.
When the accountant actually knows or suspects that another person is engaged in money laundering. Could be collegue, third party or client
What is the difference between protected and authorised disclosure?
Protected disclosure - Disclosure of suspicion of money laundering is protected against allegations of breach of confidentiality.
Authorised disclosure - Any person who has realised they have been involved with or about to be involved with money laundering.
What are the three money laudnering offenses?
Concealing - Disguising, converting or conceal criminal property
Arrangement - Person may be guilty if they become concerned with an arrangement or they know of or suspect the facilitating the acquisiton, retention of use of criminal property
Acquisition - A person may be guilty if they acquire, use or possess criminal property
What is the penalty for failure of disclosure and under what act?
Under the Proceeds of Crime act 2002
5 years in prison and/or fine
The accountant may aslo face disciplinary action by the AAT professional accounting body.
