Money Laundering and Financial Services Flashcards
What is the offence of concealing?
Subjectively knows or suspects that they are concealing, converting or transferring criminal property or removing it from the UK
What are the defences to concealing?
Authorised disclosure was made to a nominated officer of the firm BEFORE the concealing transaction occurred
OR
Authorised disclosure was made after the concealing transaction with a a good reason for delay.
What is the offence of arranging?
Knows or suspects they are facilitating the acquisition, retention, use or control of criminal property by or on behalf of another person
What is the offence of acquisition, use or possession or criminal property?
Acquire, possess or use criminal property knowing or suspecting it is criminal property
What is a defence to the offence of acquisition, use or possession or criminal property?
The solicitor took the property in good faith as adequate consideration
What key duty does a solicitor have under POCA and the Terrorism Act?
A duty to make a suspicious activity report when they have suspicions of money laundering.
To whom are suspicious activity reports made?
The firms nominated officer or directly to the NCA if there is no nominated officer or they are not available.
What is the test for suspicion in respect of suspicion of money laundering?
The test is objective - whether a reasonable person would think the activity is suspicious.
What is the offence of tipping off?
If the solicitor indicates to a client that a SAR has been submitted or discloses than an investigation is underway.
Under what circumstances is tipping off not an offence?
When disclosing to a colleague working on the same undertaking or to another legal professional to prevent money laundering.
What is the general prohibition?
Under the general prohibition of the Financial Services and Markets Act 2000 (Regulated Activities), solicitors may not carry on an activity regulated under the act.
What are the regulated activities?
- Advising
- Dealing as an agent
- Arranging
- Managing
- Safeguarding
What are the specified investments?
- Funeral plans
- Mortgage contracts
- Debentures
- Insurance contracts
- Pension schemes
- Shares in a company
What activities are excluded from the Regulated Activities Order?
- Safeguarding a clients investments when acting as a trustee
- Advising a client, acting as their agent or arranging for the purchase or sale of control of a company
- Introducing a client to a person authorised by the Financial Conduct Authority to give financial advice
- Whilst acting as the PR of an estate, advising the PR on the merits of holding or selling specific company shares in order to pay the estate’s beneficiaries for no additional compensation.
When will an activity also be excluded?
If it is a necessary part of legal services being provided by a solicitor and the solicitor doesn’t bill for the activity separate from the legal services (although this exemption doesn’t apply to managing assets or activities relating to insurance policies).
