Topic 23 Anti-Money Laundering Flashcards
What is Money Laundering?
Filtering of proceeds of crime through legitimate mean to make their origins different to trace
All the below are examples of what?
- Opening an account with a small initial deposit & adding large sums in cash
- Making an investment into a collective investment which is encashed in a short period of time
- Arranging a mortgage which is quickly paid off
Examples of how criminals use the financial services industry to launder money
The below are what?
- Proceeds of Crime Act 2000
- Terrorism Act 2000
- EU’s Money Laundering Directives
Laws relating to Money Laundering
What is the role of the National Crime Agency (NCA)?
Combat serious and organised crime
Which department of the National Crime Agency (NCA) is responsible for tackling money laundering, fraud, Bribery & corruption and counterfeiting of currency?
National Economic Centre
Which principle money laundering offence is this?
- Criminal property is a property that a person knows or suspects is the proceeds of a crime
- It’s a criminal offence to conceal, disguise, convert or transfer criminal property
Concealing Criminal Property
Which principle money laundering offence is this?
Arranging occurs when a person becomes involved in a process they know will enable someone else to accuse, retain or use criminal property
Arranging
Which principle money laundering offence is this?
It is a criminal offence for a person to acquire, use or possess any property when that person knows or suspects is the proceeds of a criminal activity
Acquiring, using or possessing
The Proceeds of Crime Act 2002 has a requirement for what if they suspect money laundering?
Report money laundering suspicion to the authorities
It is an offence to tip off a person who is suspended of criminal activity.
True or False
True
What are these in relation to terrorist finance?
- Money or property likely to be used for terrorism purposes
- Proceeds of the commission of acts of terrorism
- Proceeds of acts carried out for the purposes of terrorism
What terrorist property is defined as
The Money Laundering regulations implement what in relation to the EU?
EU’s Money Laundering Directives
What are the below in relation to the Third Money Laundering Directive?
- Conversion or transfer of property knowing this is derived from criminal activity
- Concealment or discuse of true nature source, location, disposition, movement, rights with respect to the ownership of property. Knowing this property devired from criminal activity
What the EU defines as Money Laundering that has been committed intentionally
What are the below in relation to the Third Money Laundering Directive?
- Acquisitions, possession or use of property knowing at the time or receipt the property derived from criminal activity
What the EU defines as Money Laundering that has been committed intentionally
Participating in association to commit, attempts to commit & aiding, abbeting, facilitating & counselling the commission of any actions mentioned in the following also are part of the Third Money Laundering Directives?
- Property
- Criminal Activity
- Criminal Property
If the activities that generated a property took place outside an EU country but the money laundering took place in the EU will the proceeds be treated under EU rules?
Yes
Which money laundering directives are the below elements of?
- Implementation of AML provisions such as CDD. Relevent person must produce AML risk report & translate it’s findings into policies approved by senior management
- Wider definition of PEPs
- New of a new criminal offence that making a misleading statement in regards money laundering is punishable by a fine or a prison sentence of 2 years
Fourth Money Laundering Directives
What else does the fourth Money Laundering Directive also do?
- Tax crimes
- Strengthens the co-operation between member states
- Increases transparency around the beneficial ownership of legal entities each member state must maintain a central register of beneficial owners
To be a beneficial owner of legal entity what percentage of ownership do they need?
25%
What does the Money Laundering and transfer of funds (information) (Amendment) (EU exit) 2018 do?
Allows UK’s AML regime & counter-terrorism financing to work with the EU post Brexit
The below are covered by which money laundering directive?
- Virtual Money Providers
- Art Traders (transactions of 10,000 EUR or more)
- Estate Agents (for properties let at 10,000 EUR)
Fifth Money Laundering Directive
What are the below in relation to the Fifth Money Laundering Directive
- Maximum monthly payments transaction limit of €150 for non-reloadable payment instructions (threshold reduced from €250 to €150)
- Remote payment transactions that exceed €50 are subject to CDD (threshold reduced from €100 to €50)
New charges regarding electronic money