Money Laundering

Question 1

What are the stages of money laundering

Answer 1

Placements
Layering
Integration

Question 2

What are the three types of Offences that can be committed by any person under the crime act 2002

Answer 2

Concealing disguising converting or transferring money that is from the proceeds of crime

Entering into an arrangement to launder That proceeds of crime or having the suspicion that money laundering is taking place you’re not reporting it

Acquisition of the use of possession of criminal property

Question 3

What should an order to do if it’s suspected money laundering

Answer 3

Firstly it is difficult to assess whether somebody is money laundering and to call them out could be extremely damaging to the reputation. In this case order to firms have a designated money laundering reporting officer who will take on the case

Question 4

What are the auditors responsibilities regarding the money laundering regulations 2007

Answer 4

It requires businesses in accountancy sector to establish Anti-money laundering systems and controls including-

Customer due diligence

Appointments of a money laundering reporting officer

Train staff

Establish systems

Include a paragraph in the engagement letter setting out the auditors responsibilities in respect of money laundering

Maintain records detailing how the regulations have been complied with for five years

Question 5

What are some risk factors that may suggest money laundering

Answer 5

A cash based business

Many similar deposits and withdrawals in various bank accounts for no obvious reason

Many jurisdiction involved in the transfer of money

Use of tax havens

Bearer Bonds all checks

Higher profits that could be reasonably expected

Paul documentation for transactions

Secrecy