Money Laundering

Question 1

what are the offences under the Proceeds of crime act 2002?

Answer 1

• S327- concealing, disguising, converting or transferring criminal property
• s. 328 is entering or becoming concerned in an arrangement which facilitates the acquisition, retention, use or control of criminal property and
• s. 329 is acquiring, using or having possession of criminal property.
• s330- Knows, suspects or has reasonable grounds for knowing or suspecting that another person is engaged in money laundering and does not disclose this to the nominated officer.

Question 2

what is a defence for offences proceeds of crime act?

Answer 2

most common defence is make an authorised disclosure to MLRO!!!!!

Question 3

what happens once the MLRO has been informed?

Answer 3

Once the MLRO has been ifnromed, neither them or the fee earner should authorise or undertake any prohibited act unless:
1. Authorised by the NCA
2. Seven working days has passed from the disclosure to the NCA during which time NCA has not refused authority to proceed.
3. NCA refused consent during the notice period and the moratorium period (31 days starting with the refused consent) has expired.

Question 4

what is standard due diligence?

Answer 4

• identify customer and verify their identity using passport.
• If a company, identify its name, company number, address of registered office, its constitutional documents, directors, managers etc (people than own more than 25% of voting rights in company).

Question 5

when to carry out enhanced customer due diligence?

Answer 5

where there is a higher risk of money laundering, organisations should conduct enhanced CDD.

Question 6

when to do simplified customer due diligence?

Answer 6

Customer may be a public administration, publicly owned enterprise, financial or credit institution or a company on a regulated stock market.