Legal services Flashcards

Question

Standard due diligence for partnerships?

Answer 1

Obtain into on individuals making up partnership UNLESS well known, reputable, histocial org with substantial public info, obtain: 1. Name 2. Registered/trading address 3. Nature of business

Answer 2

Verify existence using: * Name * Co number or other registration * Registered office address and principle place of business If not listed on regulated marked, take reasonable measures to verify: * Law its subject to * Constitution/other governing docs * Names of board of dirs or other senior ppl responsible for its operations

Answer 3

beneficial owner

Answer 4

◊ Individual who exercises ultimate control over management ◊ Individual who ultimately owns/controls over 25% shares or voting rights ◊ Individual who controls

Answer 5

Individual who: ◊ Ultimately is entitled to/controls over 25% share capital or profits or more than 25% voting rights ◊ Otherwise exercises control over management of partnership

Answer 6

1. Settlor 2. Trustees 3. Beneficiaries 4. Class of ppl in whose main interest the trust is set up 5. Any individual who has control over the trust

Answer 7

Where firm determines though **individual risk assessment** that business relationship/transaction presents low risk of ML/TF Take into acc: * If client is co listed on regulated market * Location of regulated market * Where client is est/does business * List not decisive, must obtain evidence

Answer 8

1. Case identified as high risk in firms risk assessment or in info made avaliable by SRA/Law Society 2. Client/counter part to transaction in high risk 3rd country 3. Client/close family member/known associate is a politically exposed person (PEP) 4. transaction is complex or unusually large OR there's an unusual pattern of transactions OR transactions have no apparent economic or legal purpose 5. Any other situation where theres a high risk of ML/TF

Answer 9

* Assistant ministers * MPs * Members of supreme/constitutional courts or of other high- level judicial bodies whose decisions are not generally subject to further appeal, except in exceptional circumstances; * Members of courts of auditors or of the boards of central banks; * Ambassadors, chargés d’affaires and high- ranking officers in the armed forces; * Members of the administrative, management or supervisory bodies of State- owned enterprises.

Answer 10

* Spouse/civil partner * Children and their spouse/civil partner * Parents

Answer 11

* Domestic PEPs treated as lower risk then overseas PEPS unless enhanced risk factors present * Sol must have approval of senior management to act * Sol must take adequate measures to source wealth/funds * Must conduct enhanced ongoing monitoring of business relationships

Answer 12

□ Law relating to money laundering/terrorist financing □ Requirements of data protection □ How to recognise and deal with transactions potentially relating to ML/TF

Answer 13

Copy of docs/info obtained for due diligence/ongoing monitoring Keep for 5y from end of business relationship/transaction

Answer 14

**Corporate offence:** failure to prevent the criminal facilitation of tax evasion by employees/other associated persons (strict liability) **Only defence:** firm had in place reasonable prevention procedures or can show that it was reasonable not to have had such procedures in place

Answer 15

1. Arranging 2. Acquisition, use or possession 3. Concealing 4. Failure to disclose 5. Failure to disclose by nominated officers 6. Tipping off 7. Prejudicing an investigation

Answer 16

Offence to enter into or become concerned in an arrangement which a parson knows or suspects facilitates the retention, use or control of the proceeds of crime Funds don’t need to actually pass through hands of person connected with the arrangement

Answer 17

1. Authorised disclosure 2. Overseas defence

Answer 18

where individual knew or believed that the criminal conduct occurred abroad and the conduct in question was lawful in the county where it took place

Answer 19

Must be made.. * by the person who, but for the disclosure would be committing an offence * in relation to the criminal property * To a constable, an officer of HMRC , nominated officer (MLR))

Answer 20

◊ sol makes authorised disclosure to firms nominated officer as soon as practically possible prior to the transaction taking place ◊ AND consent of nominated officer or NCA obtained Nominated officer unable to give consent until: 1. They receive their consent from the NCA 2. They hear nothing from the NCA for 7 working days (from 1st working day after disclosure made) 3.Consent is refused by NCA but subsequently granted within 31d, starting from day refusal given or a period of 31d has expired from refusal date

Answer 21

◊ Disclosure made whilst prohibited act ongoing ◊ When sol began to do act, they didn't know/suspect the property represented a benefit from criminal conduct ◊ Disclosure is made as soon as practicable after they first know/suspect the prop is the benefit of criminal conduct ◊ Disclosure is made on sols own initiative

Answer 22

◊ Solicitor must have good reason for their failure to disclose prior to completing act ◊ Disclosure must be made as soon as practicable ◊ Disclosure must be made on solicitors on initiative

Answer 23

□ Authorised disclosure □ Overseas □ Adequate consideration ( if there was adequate consideration for acquiring, using and possessing the criminal property UNLESS the individual knew or suspected those goods or services might help carry out criminal conduct)

Answer 24

to conceal, disguise, convert or transfer the proceeds of crime or remove the proceeds of crime from the jurisdiction of England and Wales

Answer 25

□ Authorised disclosure □ Overseas

Answer 26

1. they know/suspect or has reasonable grounds to know/suspect, that a person is engaged in money laundering; 2. the info comes to them in the course of a business in the regulated sector; 3. the info may assist in identifying the money launderer or the location laundered prop 4. they don’t make a disclosure as soon as is practicable.

Answer 27

1. Disclosure made to firms nominated officer of NCA as soon as practically possible 2. Indented to make disclosure but has reasonable excuse for not doing so 3. Improper training 4.Legal professional privilege (unless indeed offence) 4. overseas

Answer 28

They know or suspect or have reasonable grounds to know or suspect money laundering as a consequence of their role as a person nominated to receive disclosures AND they fail to make the necessary disclosure to the NCA as soon as practical

Answer 29

Reasonable excuse for not disclosing info

Answer 30

1. Disclosing a disclosure if that disclosure is likely to prejudice any investigation that follows such a report 2. Disclosing an investigation where the disclosure is likely to prejudice the money laundering investigation (info must have come in course of a business in the regulated sector)

Answer 31

□ If person who made the disclosure didt know or suspect that the disclosure would prejudice an investigation into money laundering □ If the disclosure is made by an advisor to their client for the purposes of dissuading the client from engaging in the alleged money laundering (treat with caution)

Answer 32

Similar to tipping off but for non-regulated individuals

Legal services Flashcards

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