Topic 23 - Anti-Money Laundering Flashcards
What is money laundering
Filtering money from illegal activity into accounts so they appear legitimate
What is the proceeds of crime act 2002
3 principle money laundering offences:
- concealing criminal property (knowing)
- arranging (involved in process)
- acquiring, using or possessing (owning)
How does the terrorism act 2000 relate to money laundering
The act mentions ‘the retention or control of a terrorist property‘ as an offence
What are the money laundering regulations
It’s the key EU legalisation relating to money laundering.
What is the third money laundering directive (2005)
It defines money laundering in detail and is a directive for EU legislation
What is the fourth money laundering directive (2017)
In response to the (FATF) European Commission adopted a fourth directive. Aim was to strengthen the anti-money laundering regime
What is the fifth money laundering directive (2020)
This was implemented to include additional entities such as virtual currency providers, art traders and estate agents acting as intermediaries for properties let at 10k PCM
Acceptable form of identification
- Passport
- National identity card with photo
- Driving license
- Electoral roll
- Recent council tax/utility bill
What relation do credit reference agencies have to money laundering
They conduct the checks on behalf of the financial institutions, will leave a footprint
What is the role of the FCA in money laundering
They require all authorised firms to have systems and controls in place to mitigate risk of financial crime including money laundering
What is the joint money laundering steering group
Made up of leading UK trade associates, it’s aim is to promote good practice in countering money laundering
What is the role of the money laundering reporting officer (MLRO)
Each firm must appoint a MLRO who’s responsible for coordinating the firms anti money laundering activities. Has to be a senior member
What are the potential penalties for money laundering offences
Anyone convicted under the proceeds of crime act 2002 can face up to 14 years or/and an unlimited fine
What is the bribery act 2010
An individual offering, promising or giving financial advantage to another to bring out improper performance
