A4 Regulatory and Fiscal Frameworks Flashcards
S 327(1) POCA : it is an offence to … (5)
Conceal, disguise, convert, transfer or remove criminal property from UK
S 327(2) POCA : it is a defence to s 327(1) (concealment etc. of criminal property) if… (2)
- Authorised disclosure under s 338 is made OR
- Intended to make disclosure but had reasonable excuse for not doing so
S 338 (2) POCA : An authorised disclosure can be made _, _ or _ an act
Before, during an after
S 338 (2A) POCA : Conditions for making authorised disclosure during an act (2)
- You began to do act at a time when you did not suspect that property was benefit from criminal conduct
- Disclosure made on own initiative and as soon as practicable after knowing
S 338 (3) POCA : Conditions for making authorised disclosure after an act (2)
- Reasonable excuse for failure to disclose before doing
- Disclosure made on own initiative and as soon as practicable
S 328 POCA : It is an offence to … (facilitation)
- Enter or become concerned in an arrangement
- Which you know or you suspect facilitates
- Acquisition, retention, use or control of criminal property by or on behalf of another person
S 328(2) POCA : It is a defence to s 328(1) (facilitating ) if (2)
Authorised disclosure made under s 338 OR
Intended to make disclosure but had reasonable excuse for not doing so
S 328(2) POCA : Not an offence to facilitate acquisition etc of criminal property outside UK if
Relevant criminal conduct was not, at time it occured, unlawful under criminal law in that other country or territory
S 329 (1) POCA : It is an offence to … (3)
Acquire, use or have possession of criminal property
S 329(2) POCA : It is a defence to s 329(1) (acquisition etc.) if… (3)
- Authorised disclosure is made OR
- Intended to make disclosure but had reasonable excuse for not doing so OR
- Acquired/used/had possession of property for adequate consideration
S 330 POCA : Failure to disclose information on ML - what are the elements of offence? (3)
- Knows or suspects or has reasonable grounds for knowing or suspecting that another person engaged in ML
- Information came to him in course of business in regulated sector
- Failed to disclose to nominated officer
Under S 330 POCA : What are examples of “regulated sector” activities? (4)
- Tax advice
- Buying and selling properties
- Managing client assets
- Creating and operating companies/trusts
S 330(3) POCA : What must you disclose? (3)
- Identity of money launderer
- Whereabouts of laundered property
- Information giving rise to knowledge/suspicion of ML
S 330(6) - (7) POCA : It is a defence to s 330(1) (failure to disclose info on ML) if… (3)
- Had reasonable excuse for not disclosing
- Information came to you in privileged circumstances
- Do not know or suspect ML AND employer did not provide training on AML
S 333A(3) POCA: It is an offence to … (tipping off) (3)
- Disclose that investigation into allegations of offence is being contemplated or being carried out
- Disclosure likely to prejudice investigation
- Information on which disclosure based came to you in course of business in regulated sector
What is the general prohibition in s 19 FSMA?
- Cannot carry out “regulated activity in UK unless you are
- Authorised person or
- Exempt person
s 22 FSMA: What is a “regulated activity” (3)
- An activity of a specified kind
- Carried on by way of business
- Relates to a specified investment
s 22 (4) FSMA: Definition of “investment”
Any “asset, right or interest”
Arts 75, 76, 77 RAO list these as specified investments
- Rights under a contract of insurance
- Shares
- Instruments creating or acknowledging indebtedness
Arts 83, 84, 88 list these as specified investments
- Options to acquire or dispose of securities/currencies/gold/investments
- Futures
- Regulated mortgage contracts
Art 61(3) RAO on specified activities, defines regulated mortgage contracts as one where: (3)
- Lender provides credit to individual or trustee
- First legal mortgage on land (i.e. ranking in priority ahead of other mortgages)
- 40% of the land intended to be used as dwelling
Art 14 RAO: Specified activity - Dealing in investments as principal means…
Buying, selling, subscribing for or underwriting securities or contractually based investments
Exceptions to Art 14 RAO (Dealing in investments as principal) (4)
- Art 15: The person doesn’t hold himself out as principal
- Art 16: Dealing in contractually based investments (e.g. long-term insurance, options, futures, CFDs)
- Art 66: Trustees and personal representatives if acting as a bare trustee (simply following instructions)
- Art 70(1): Sale of a body corporate
Art 21 RAO: Specified activity - Dealing in investments as agent means..
Buying, selling, subscribing for or underwriting securities or contractually based investments as agents
(Includes solicitors acting under powers of attorney)
