Money laundering Flashcards
Who is responsible for ensuring a firm takes steps to comply with MLR/PoCA?
COLP and COFA and managers
What must all firms keep in relation to AML?
AML written record of steps taken to identify/assess risks
What are the money laundering warning signs?
- Instructions outside area of expertise
- Unusual retainers
- Uce of client accounts
- Setting up trust
- Property purchase
What are the countries on the Financial Action Task Force list?
- North Korea
- Iran
- Myanmar
What are the countries on the European Commission list?
- Afghanistan
- Barbados
- Cambodia
- Cayman Islands
- Haiti
- Syria
- Uganda
- Vanuatu
- Yemen
- Congo
- South Sudan
- Trinidad and Tobago
- Tanzania
- Philippines
- Iran
- North Korea
What is the direct involvement offence?
- Concealing, disguising, converting or transferring criminal property
- Entering arrangement which you know/suspect facilitates acquisition/retention/control of criminal property
- Acquiring/using/possessing criminal property
What is the defence to direct involvement?
Authorised disclosure
What is authorised disclosure?
to a constable, customs officer or nominated officer
a) Before prohibited act
b) During prohibited act + didn’t know/suspect + own initiative + as soon as practical
c) After prohibited act + good reason for failure to disclose before + own initiative + as soon as practical
What is included in the regulated sector?
Participating in financial and real property transactions
What are the non-direct involvement offences that the regulated sector is subject to?
Failure to disclose
Tipping off
What is the failure to disclose offence?
- Know/suspect someone is laundering proceeds of crime and
- Receive information in course of business in regulated sector and
- Can identify person who is laundering/whereabouts/information that may assist identifying
After making a disclosure to the MLRO, how long must you wait before taking further action?
o Authorised by NCA
o NCA has not refused authority + seven working days passed
o NCA refused consent + 31 days passed since refusal
What are the penalties for breaching money laundering rules?
- Direct involvement offences = 6 months (summary)/ 14 years (indictment) or fine
- Non-direct involvement offences = 6 months (summary)/5 years (indictment) or fine
What is required for standard due dilligence?
a) Identify customer and verify identity
b) Where company – name, company number and RO/principal place of business
c) Identify beneficial owner
d) Ongoing monitoring of business relationship
When will enhanced due dilligence be needed?
- higher risk of ML or a PEP
- provided false/stolen ID or info
- Transaction is complex, unusually large or unusual pattern/no apparent economic or legal purpose
- By nature presents a higher risk