Money Laundering

Question 1

What are 3 direct money laundering offences under POCA 2002?

Answer 1

1. Concealing
2. Arranging
3. Acquisition, Use, or Possession

Question 2

The offence of concealing is committed if a solicitor (S) subjectively _______ or ________ they are concealing converting, or transferring _________ property, or removing it from the __

Answer 2

knows, suspects, criminal, UK

Question 3

A defence to the direct offences include when an authorised disclosure was made to a ________ _____ of the firm, ___, or police _____ the transaction occured

Answer 3

nominated officer, NCA, before

Question 4

A defence to the direct offences is when authorised disclosure was made _____ the transaction occurs with ______ ______ as to the delay

Answer 4

after, good reason

Question 5

The offence of arranging is committed if S _____ or __________ they are facilitating the acquisition, ______, use or _______ of ______ property by or on behalf of another person

Answer 5

knows, suspects, retention, control, criminal

Question 6

The offence of acquisition, use, or possession of criminal property is committed if S carries this out whilst ________ or __________ it is criminal property

Answer 6

knowing, suspecting

Question 7

A defence to the offence of acquisition, use, or possession is that S took the property in good _____ as adequate _____________

Answer 7

faith, consideration

Question 8

What are 3 indirect money laundering offences?

Answer 8

1. Failure to report
2. Tipping off
3. Prejudicing an investigation

Question 9

The test for making a suspicious activity report (SAR) (and consequently the crime for failing to report) is ________ - whether a ________ person would think the activity is suspicious

Answer 9

objective, reasonable

Question 10

A defence for failure to report is a lack of _________ from the solicitor’s firm, but only under ______ _____ (not under the Terrorism Act). The ________ can be criminally liable for failure to provide this

Answer 10

training, POCA 2002, partners

Question 11

What are 2 main tipping off offences?

Answer 11

1. Disclosing to a third party that a SAR has been made
2. Disclosing an investigation to a third party

Question 12

The offence of tipping off is not committed if S discloses to a colleague working on the same ________ or to another _____ _______ to prevent money laundering

Answer 12

undertaking, legal professional

Question 13

What are 3 elements of the offence of prejudicing an investigation?

Answer 13

1. Knows/suspects money laundering or similar activity is being/about to be conducted; and
2. Discloses to any person likely to prejudice an investigation; or
3. Falsifies, conceals, or destroys document relevant to an investigation

Question 14

What are 2 potential defences to the offence of prejudicing an investigation?

Answer 14

1. Person making disclosure didn’t know/suspect
2. Disclosure made in connection with legal proceedings

Question 15

How long does the NCA have to respond to a SAR (aka as the “prescribed notice period”?

Answer 15

7 working days

Question 16

What are 4 situations in which a solicitor must exercise due diligence?

Answer 16

1. Establishment of a business relationship with a client
2. Client proposes to enter a transaction to 15,000 Euros or more
3. Suspicion of money laundering or terrorist financing
4. Solicitor doubts the veracity of documents/data previously submitted by the client for CDD purposes

Question 17

In what 4 situations must a solicitor exercise enhanced due diligence?

Answer 17

1. Involves a person established in a ‘high risk third country’
2. Involves a ‘politically-exposed person’ (PEP), or a family member or known associate of a PEP
3. Transaction is complex and unusually large
4. Any other situation that presents a higher risk of money laundering or terrorist financing.

Question 18

A firm must keep client due diligence records for how long after the end of the relationship with the client?

Answer 18

At least 5 years