Money Laundering Flashcards
Pass Exam
What is money laundering?
the process by which money is, illegally obtained is exchanged for clean money with no obvious links to its criminal origins.
What is layering?
where a series of complex transactions are undertaken to disguise the source of cash.
What is placement?
where cash obtained illegally is put into the banking system.
What is intergration
where the money is reintroduced into the financial system as apparently legitimate funds.
Explain the Terrorism Act 2000
The act relates to terrorist funding and required regulated business to report knowledge or suspicion of offences. Including
o Fundraising for the purposes of terrorism
o Involvement in funding arrangements
o Money laundering – aiding the retention or control of money which is destined for or is the proceeds of terrorism.
Explain the Proceeds of Crime Act 2002
relates to financing and possession of criminal property as follows:
- Concealment, disguise, conversion and transfer/removal of criminal property from the UK.
- Entering into or becoming involved in an arrangement which facilitates the acquisition, retention, use or control of criminal property of behalf of another person.
- Failure to disclose knowledge or suspicion of the above to a nominated office or the National Crime Agency (NCA).
- Tipping off any person that such a disclosure has been made.
What is included in the Money Laundering Regulations 2007?
businesses and their senior managers are required to:
- Put in place systems to check and procedures designed to prevent MLR
- Train staff in procedures mentioned above
- Appoint a nominated money laundering officer to speak and report to the NCA
- Put in place procedures to identify and verify customer identity (KYC)
- Establish a risk-based approach and keep customer identities for a minimum of 5 years.
What would happen if you got prosecuted for money laundering?
Unlimited fines and/or a prison term of two years
