topic 23 - anti-money laundering Flashcards
What is money laundering?
Involves filtering the proceeds of any kind of criminal activity through a series of accounts or other financial products in order to make such fuds appear legitimate or make their origins difficult to trace
The National Crime Agency
works to combat serious and organised crime. UK body working in partnership with law enforcement agencies internationally
Financial Action Task Force (FATF)
- An inter-governmental organisation established in 1989 to co-ordinate the international fight against money laundering
- In 2001, the remit of FAFT was expanded to include terrorist financing
- Policy-making body, does not become involved in law enforcement
Record-keeping requirements
- Evidence of identification must be retained until at least 5 years after the relationship with customer has ended
Joint Money Laundering Steering Group
made up of the leading UK trade associations in the financial services industry. Promotes good practice in counter money laundering and gives practical assistance in interpreting the UK money laundering regulations. Primarily achieved by the publication of guidance notes
Penalties for money-laundering offences
- Anyone convicted under the Proceeds of Crime Act 2002 of concealing, arranging or acquiring could be sentenced to up to 14 years imprisonment or an unlimited fine or both. Failing to disclose or tipping off – up to 5 years, unlimited fine or both
. - A partner or director who fails to comply with regulation can be fined, receive up to 2 years in prison
If a money laundering reporting officer (MLRO) suspects a case of attempted money laundering, to whom must this be reported?
The National Crime Agency
The EU Fourth Money Laundering Directive contains a provision requiring member states to maintain a register of the beneficial owners of legal entities. A beneficial owner is one who controls what percentage of a legal entity?
25%
