Supplementary AML Guidance

Question 1

You feel you have paid too much tax and decide to ‘give yourself a break’ and only declare half of your investment income, when would money laundering arise?

Answer 1

The day after the income tax is due for payment

Question 2

When will a negligent error by a taxpayer which leads to an underpayment of VAT be classed as money laundering?

Answer 2

Only where the person knew they had committed a criminal offence

Question 3

True or false, where the privilege reporting exemption applies, the practitioner is not required to carry out CDD?

Answer 3

False

Question 4

True or false, an SAR can never be made where the suspicion came to a relevant professional adviser in privileged circumstances?

Answer 4

False

Question 5

What are specific offences contained in the VATA 1994?

Answer 5

Sending false documents
Supplying goods without providing security

Question 6

True or false, bribing a commissioner and signing an untrue document are offences described in the VATA 1994?

Answer 6

False

Question 7

What does it mean if a client indicates that they are unwilling to disclose an error to HMRC?

Answer 7

Criminal intent, a SAR is required unless the privilege reporting exemption applies

Question 8

Does innocently missing a payment date constitute to suspicion for money laundering?

Answer 8

No

Question 9

What exemption may apply where a tax adviser provides advice on the tax law to assist their client in understanding their tax position?

Answer 9

Privilege reporting exemption

Question 10

Do money laundering requirements affect enquiries under COP 9 civil procedures?

Answer 10

No

Question 11

What should a tax adviser do if they receive a COP 9 from HMRC and has knowledge or suspicion of money laundering?

Answer 11

Tell NCA as soon as is practicable

Question 12

What should a tax practitioner do where they are uncertain of their obligations under the MLTF regime?

Answer 12

Seek specialist help
Seek guidance from AML supervisory body

Question 13

What are risk areas in relating to money laundering that could occur in the tax sector?

Answer 13

A client’s refusal to correct past errors
A client’s deliberate understatement of profits
A client’s deliberate overstatement of losses
Where a client asks the TP to undertake planning that involves structures which appear to evade tax

Question 14

When is a tax practitioner prohibited from making a ML report?

Answer 14

Where they are a professional legal adviser or relevant professional adviser and they suspect another person is engaged in ML but they came to receive the evidence in privileged circumstances