Money Laundering

Question 1

Definition

Answer 1

Creates appearance that money from crimes come from legitimate sources

Question 2

Regulation

Answer 2

Financial Action Task Force created policies re:
* Customer Due Diligence
* Customer Record Keepling
* Record suspicious transactions
* Transparent Companies /
* Co-operation internationaly.
*

Question 3

Scope for Auditors

Answer 3

• Not appointing a MLRO =bad
• Not having Risk mgmt = bad
• Fail to report suspicious = bad
• Tipping people off=bad
  *

Question 4

How to be protected?

Answer 4

• Report suspicious transactions(Timely)
• Anti ML Culture
• Risk Manangement procedures
• MLRO -Dedicated role
• Customer due diligence - KYC system
• Frequent training
  *

Question 5

Reporting Duties

Answer 5

• Must regardless of amount
• No need to quantify
• No automatic resignation (unless commercially reasonable)
• Report role, business, transaction details, location