Money Laundering Regulations 2017 Flashcards
1
Q
When must a solicitor carry out CDD?
A
When:
- Establishing a business relationship
- Carrying out an occasional transaction
- Suspects money laundering
- Has doubts about the adequacy of identification documents
2
Q
What is a ‘business relationship’
A
Must have an element of duration I.e an ongoing relationship
Regulation 4
3
Q
When must CDD measures be carried out in respect of an occasional transaction?
A
- A transfer of funds of more than 1,000 euros
- A transaction amounting to 15,000 euros or more
4
Q
What countries are considered high risk by the European Commission?
A
- Afghanistan
- Bosnia and Herzegovina
- Guyana
- Iraq
- Lao PDR
- Syria
- Uganda
- Vanuatu
- Yemen
- Ethiopia
- Sri Lanka
- Trinidad and Tobago
- Tunisia
- Pakistan
- Iran
- Democratic People’s Republic of Korea
5
Q
What does ‘standard CDD’ consist of?
A
- Identifying the customer and verifying their identity
Where the customer is a company: - Identify company name, number, registered address, and principal place of business
- Take reasonable measures to identify the ownership and control structure
- Identify beneficial owner (owns more than 25% of shares OR controls the body corporate)
Reg 28
6
Q
When can SDD happen?
A
Low degree of risk, taking into account:
- Customer risk factors, and
- Product, service, transaction or delivery channel risk factors
Reg 37
7
Q
When should EDD happen?
A
High risk situation, taking into account:
- Customer risk factors
- Product, service, transaction, or delivery channel risk factors, and
- Geographical risk factors
8
Q
What are the consequences for offences committed under MLR?
A
Civil:
- Fines and publication of statements of censure
- Suspensions and removals of authorisation by SDT
Criminal:
- Imprisonment or a fine or both
