Direct Involvement and Non-Direct Involvement Offences, and Defences under Proceeds of Crime Act 2002 Flashcards
(17 cards)
Under PoCA, “criminal property” is defined as:
A. Any property representing benefit from criminal conduct
B. Any property held in a client account
C. Any government-owned asset
D. Any asset over £1,000 in value
A. Any property representing benefit from criminal conduct
Explanation: Section 340 defines criminal property as any benefit, monetary or otherwise, from unlawful activity
Which section creates the offence of concealing or disguising criminal property?
A. Section 329
B. Section 327
C. Section 331
D. Section 333
B. Section 327
Explanation: Section 327 makes it an offence to convert, transfer, conceal, disguise, remove or dispose of criminal property
The actus reus of the “arrangements” offence under Section 328 involves:
A. Failing to disclose suspicions
B. Warning a client about an SAR
C. Making or entering into any arrangement facilitating criminal property handling
D. Acquiring criminal property
C. Making or entering into any arrangement facilitating criminal property handling
Explanation: Section 328 targets any agreement or plan that helps another acquire, retain or use criminal property
The “tipping-off” offence is found in which PoCA section?
A. Section 330
B. Section 331
C. Section 332
D. Section 333
D. Section 333
Explanation: Section 333 prohibits informing a subject that a SAR has been or will be made, as this prejudices investigations
A solicitor, knowing funds derive from fraud, routes them through multiple accounts to hide their origin. This most likely breaches:
A. Section 327 (concealment)
B. Section 329 (acquisition)
C. Section 331 (failure to disclose)
D. Section 333 (tipping-off)
A. Section 327 (concealment)
Explanation: Actively disguising criminal property is a Section 327 offence
A compliance officer ignores repeated reports of suspicious layering by a client. This is an offence under:
A. Section 327
B. Section 328
C. Section 331
D. Section 333
C. Section 331
Explanation: Failing to disclose known or suspected money laundering to the MLRO or NCA is a Section 331 offence
An accountant advises a client to set up an offshore trust to conceal illicit gains. This engages:
A. Section 327
B. Section 331
C. Section 328
D. Section 329
C. Section 328
Explanation: Facilitating an arrangement to handle criminal property falls under Section 328
A solicitor tells a client “the authorities are on your trail,” after filing a SAR. This infringes:
A. Section 330
B. Section 329
C. Section 328
D. Section 333
D. Section 333
Explanation: Warning a suspect about a SAR constitutes tipping-off under Section 333
To avoid conviction under Sections 327–329, a defendant can rely on the threshold defence if:
A. The property value was below £1,000 and no reasonable grounds to suspect
B. They reported the transaction first
C. They provided legal advice only
D. They were unaware of the offence
A. The property value was below £1,000 and no reasonable grounds to suspect
Explanation: Section 330 excludes liability if value is under threshold and no suspicion existed
Which mens rea element is required for direct involvement offences under PoCA?
A. Recklessness about confidentiality
B. Willful blindness or knowledge that property is criminal
C. Honest belief in client’s innocence
D. Negligence in record-keeping
B. Willful blindness or knowledge that property is criminal
Explanation: Direct offences require knowledge or reasonable grounds to suspect criminal origin
A lawyer refuses to disclose a client’s suspicious transaction citing client confidentiality. This may be a valid defence under:
A. Section 327
B. Section 328
C. Section 331
D. Section 333
C. Section 331
Explanation: Legal professional privilege can be a reasonable excuse for failure to disclose under Section 331
Which penalty applies on indictment for a Section 328 (“arrangements”) conviction?
A. Up to 5 years’ imprisonment
B. Up to 14 years’ imprisonment
C. Up to 12 months’ imprisonment
D. Community service only
B. Up to 14 years’ imprisonment
Explanation: Sections 327–329 carry up to 14 years and/or unlimited fines on indictment .
Which concept describes deliberately avoiding confirmation that funds are illicit?
A. Willful blindness
B. Reasonable grounds to suspect
C. Tipping-off
D. Structuring
A. Willful blindness
Explanation: Willful blindness—deliberately shutting one’s eyes to the truth—satisfies the mens rea for direct-involvement offences .
Under PoCA, who decides whether an internal disclosure becomes a SAR?
A. Senior partner
B. Money Laundering Reporting Officer (MLRO)
C. National Crime Agency investigator
D. Client relationship manager
B. Money Laundering Reporting Officer (MLRO)
Explanation: The MLRO reviews internal reports and, if warranted, files the SAR with the NCA
Which actus reus element is common to Sections 327, 328 and 329?
A. Failing to report suspicion
B. Handling of criminal property
C. Informing the suspect
D. Maintaining client confidentiality
B. Handling of criminal property
Explanation: All three direct-involvement offences require an act involving criminal property (disposal, arrangement or acquisition)
A solicitor delays reporting a SAR until after the client leaves. This most likely breaches the mens rea of:
A. Section 330 (threshold defence)
B. Section 331 (failure to disclose)
C. Section 333 (tipping-off)
D. Section 327 (concealment)
B. Section 331 (failure to disclose)
Explanation: Delaying a disclosure when you have reasonable grounds to suspect money laundering incurs Section 331 liability
Under PoCA, who is considered a “relevant person” required to report suspicions under Section 331?
A. Solicitors, accountants and estate agents
B. Any member of the public
C. Only law enforcement officers
D. Judicial officers
A. Solicitors, accountants and estate agents
Explanation: “Relevant persons” include professionals such as solicitors, accountants, estate agents and trust or company service providers who must disclose suspicions to the MLRO or NCA
