topic 14 Flashcards
4 types of Financial Crime?
● Financial fraud ● Money laundering ● Funding terrorism ● Criminal market conduct ● Insider trading
two bits legislation that cover this topic?
● Proceeds of Crime Act 2002
● Terrorism Act 2000
● Proceeds of Crime Act 2002 - three points?
o No longer separates drug related crime
o Deals with the laundering of proceeds of all crime
o Extends the obligation to report suspicions the laundering of all proceeds of crime
definition of money laundering? (4)
o Money laundering is defined as: ▪ Concealment of assets ▪ Conversion of assets ▪ Acquisition of assets ▪ Participation in the above
three offences of money laundering>?
▪ Concealing
▪ Arranging
▪ Acquiring, using, possessing
at what level £ do you obtain proof?
£10,000
● Offences? (3)
o Failure to disclose
o Tipping off
o Making a false or misleading money laundering report
● Client identification?
o Required when
▪ entering new business
▪ when the value of the transaction exceeds €15,000 as a single transaction or as part of linked transactions
▪ For life assurance
● €1000 for annual premiums
● €2500 for single premiums
o Evidence of ID is required where there is suspicion of money laundering
o If the client is introduced by a financial intermediary it is possible to accept assurance that they have obtained enough evidence of identity
● Record keeping requirements? years?
5
● Enforcement?
o Money laundering = 14 years prison and/or unlimited fine
o Failing to disclose or tipping off = 2 years prison and/or unlimited fine
● Individual’s rights – there are 7 rights under GDPR
o The right to be informed
o The right to subject access
o The right to rectification if the data held is incorrect
o The right to have data erased in certain circumstances, which are:
▪ The data no longer necessary
▪ The data subject withdraws consent
▪ The data was unlawfully processed
▪ The subject objects to the processing and there is overriding reason to continue processing
▪ Legal requirement/obligation for the data to be erased
▪ The firm will have to prove the data cannot be deleted or is still needed or relevant.
o The right to prevent or restrict processing
o The right to data portability
o The right to object
o Rights in relation to automated decision-making give individuals the rights to:
▪ Access to information about the reasoning behind any decisions taken by automated means
▪ Ask for decisions made only by automated methods to be reconsidered
▪ Give written notice requiring that automated decisions are not made using their personal data
o There are exceptions for the rights of individuals:
▪ Data relating to health, social work and education
▪ Personal data about physical or mental health or information required for court hearings concerned with the care of children
▪ Regulatory bodies and watchdogs carrying out roles such as protecting the public, health and safety, charities etc
fca complaints ● Complaints procedure
o Applies to?
o Applies to:
▪ Consumers
▪ Micro enterprises
● Less than 10 employees
● Less than €2m turnover/balance sheet
▪ Charities with annual income below £1m
▪ Trustees of a trust with a Net Asset Value below £1m
o Two types of complaint
▪ Reportable – alleges financial loss, material distress or inconvenience
▪ Non-reportable – no allegation of a reportable complaint or resolved within 24h
● Handling complaints???
o Must be handled within 8 weeks
o Records
▪ Records must be kept for 3 years
▪ MiFID must be kept for 5 years
o Must produce a report of reportable complaints to the FCA every 6 months
▪ Stats on less than 4-week resolution, 4-8-week resolution, over 8 week resolution
o The regulator has also introduced the following:
▪ A requirement for firms to investigate root causes of complaints to see if they may also affect other processes or products
▪ Firms must publish complaint information if they get more than 500 complaints over a six-month period
● Financial Ombudsmen Service
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