Money Laundering and Terrorist Financing

Question 1

Three Stages of money laundering

Answer 1

1) Placement
2) Layering
3) Integration

Investment firms = vulnerable to layering and integration

Banks + Building societies = vulnerable at Placement

Question 2

Under Proceeds of Crime Act + Regulated Sector Offences

Answer 2

14 Years and unlimited fine

Concealing
Assisting
Acquiring / possessing

Failure to disclose = 5 years + unlimited fine

Tipping off = 2 years

Question 3

Money Laundering Regulations

Answer 3

• Record Keeping 5 years

Senior Managers
- not comply MLR= 2 years + unlimited fine

Reckless statement of ML = 2 years

Question 4

Joint Money Laundering Steering Group

Answer 4

Guidance notes on how to implant Money Laundering Regulations

Received Treasury approval

Question 5

Terrorism Act

Answer 5

Failure to report = 5 years + unlimited fine

Give extra power to Her Majestys Treasury impose directions on firms handling funds

Question 6

Objective Test

Answer 6

Whether there are reasonable grounds to know or suspect money laundering