Overriding Legal Obligations

Question 1

What is the overriding ethos of the Equality Act 2010

Answer 1

Everyone is to be treated fairly

Question 2

What does the Equality Act try to eliminate

Answer 2

Unjustifiable Discrimination
&
Unfair Treatment

Question 3

What is a protected characteristic

Answer 3

Personal characteristics that are safeguarded under the Equality Act

Question 4

What are the 9 protected characteristics

Answer 4

Age
Disability
Gender Reassignment
Marriage/Civil Partnerships
Pregnancy & Maternity
Race
Religion or Beliefs
Sex
Sexual Orientation

Question 5

What is prohibited conduct under the EA 2010

Answer 5

Unlawful behaviour

Question 6

What are the types of prohibited conduct

Answer 6

Direct discrimination
Indirect discrimination
Disability discrimination
Harassment
Victimisation

Question 7

What is direct discrimination

Answer 7

Where a person is treated less favourably due to a protected characteristic

Question 8

What are the conditions to prove direct discrimination

Answer 8

Victim must show:-
Another person would have been treated differently
Treatment was less favourable because of protected characteristic

Question 9

What is indirect discrimination

Answer 9

Policy, practice or rule applies but impacts one of the characteristics

Question 10

What is disability discrimination

Answer 10

A person treated unfavourably because of their disability

(No need to compare the treatment with another like direct discrimination)

Question 11

What is harassment

Answer 11

Unwanted conduct:-
To a protected characteristic
And violates dignity
Or creates a hostile working environment

Question 12

What is victimisation

Answer 12

Where a person treats another person less favourably because they have raised an issue with their conduct about a protected act

Question 13

What is a duty to make adjustments

Answer 13

Duty to make reasonable adjustments

Question 14

A failure to comply with a duty to adjustments mean what?

Answer 14

Discrimination

Question 15

What is the test for a duty to make adjustments

Answer 15

REASONABLE steps must be taken to prevent a SUBSTANTIAL disadvantage

Question 16

When firms are making adjustments for disabilities what approach should they take

Answer 16

A proactive approach not a reactive approach

Question 17

Can costs for reasonable adjustments be passed onto clients

Answer 17

No

Question 18

When considering what adjustments are necessary what does the court take into consideration

Answer 18

Costs and resources

Question 19

What obligations do solicitors owe their employees

Answer 19

Unlawful acts: employees & prospective employees

Making adjustments: employees & prospective employees

Vicarious Liability

Positive Action

Question 20

What adjustments should be made for employees and prospective employees

Answer 20

Reasonable adjustments which they know or ought to have known about and is likely to suffer a disadvantage

Question 21

What is vicarious liability

Answer 21

Unlawful act of their employees committed during the course of their employment

Question 22

Can employers escape vicarious liability

Answer 22

Yes if they can show they took all reasonable steps to prevent the behaviour e.g training

Question 23

What is positive action

Answer 23

Treating someone with a protected characteristic more favourably

Question 24

When is Positive Action allowed

Answer 24

Only permitted where the person with the protected characteristic is as suitable for the role as others.

(Tiebreak situation in interview)

Question 25

What is money laundering

Answer 25

Method used by criminals to conceal unlawful sources of money from criminal activity making it appear the money is from a legitimate source.

Question 26

What is proceeds of crime

Answer 26

The benefit that comes from the criminal activity. I.e. money from selling drugs

Question 27

What is the three stage of money laundering?

Answer 27

Placement - dirty money Layering - washed money Integration- clean money

Question 28

What does placement mean in money laundering?

Answer 28

Money being introduced to the financial system

Question 29

What does layering mean in money laundering?

Answer 29

Money passing through parties/transactions so that it distances the money from criminal activity

Question 30

What does integration mean in money laundering?

Answer 30

Money in the financial system that the criminal has possession of. Laundered money

Question 31

Who is the money laundering and terrorist watchdog?

Answer 31

Financial Action Task Force

Question 32

What does the FATF stand for?

Answer 32

Financial Action Task Force

Question 33

What does the FATF do?

Answer 33

Inter governmental body that sets international standards designed to prevent money laundering.

Question 34

Where are the laws set by the FATF for the UK found?

Answer 34

Money Laundering, Terrorist Financing and Transfer Funds Regulations 2017 and POCA.

Question 35

What are the 5 money laundering regulations law firms must abide by?

Answer 35

1. Maintain a Risk Assessment 2. Maintain risks from the assessment 3. Must appoint a MLCO & MRLO 4. Must provide staff with training 5. ID of clients to be verified

Question 36

What is a MLCO

Answer 36

Money Laundering Compliance Officer Responsible for firms compliance of the rules

Question 37

What is a MLRO?

Answer 37

Money Laundering Report Officer Responsible for reporting suspicious activity

Question 38

What is customer due diligence?

Answer 38

Measures in place to verify the ID of a client

Question 39

How long must a clients ID be kept for?

Answer 39

5 years

Question 40

What timeframe should ID be obtained?

Answer 40

Must take place as soon as possible after first contact

Question 41

When must solicitor carry out CDD?

Answer 41

1. Forming a business relationship 2. Carrying out occasional transaction around £15000 3. Solicitor suspects ML 4. Doubts accuracy of docs

Question 42

What is simplified due diligence?

Answer 42

Permitted when it’s low risk (Well known company)

Question 43

When is enhanced due diligence needed?

Answer 43

Examining background Examining purpose of transaction Increased monitoring Extra steps to verify clients id

Question 44

When MUST EDD be applied?

Answer 44

High risk third county PEP or associate of them Having never met client in person

Question 45

What are some warning signs to look out for in ML?

Answer 45

Secretive Uncooperative Evasive Behaviour Unusual sources of funding Urgency Jurisdiction movement

Question 46

If a solicitor suspects ML what should they do?

Answer 46

Report to the MLRO who considers whether to report to NCA

Question 47

What time period should ML be reported?

Answer 47

As soon as practicable

Question 48

What is the Proceeds of Crime Act?

Answer 48

Offences concerned with Money Laundering

Question 49

What are direct involvement POCAS?

Answer 49

327 - Concealing/disguises/coverting 328 - facilitates or assists ML (know or suspect) 329 - enjoys the benefits of ML

Question 50

What are non direct involvement POCAS?

Answer 50

330 - fail to disclose ML (known/suspect) ought to have known 331- as above but specific to MLRO 333A - tipping off offences

Question 51

What are the 6 defences to ML?

Answer 51

Consent Defence Reasonable Excuse Defence Adequate Consideration Defence Training Defence Privileged Defence Legal Overseas Defence

Question 52

What is the consent defence ML?

Answer 52

MLRO can ask for consent for the transaction. If NCA has not responded within 7 MLRO can deem consent provided S327,328,329

Question 53

What is the Reasonable Excuse Defence?

Answer 53

When a solicitor/MLRO intended to make a disclosure but had a reasonable excuse for not doing so. (No guidance on reasonable excuse) S327,328,328,330,331

Question 54

What is adequate consideration defence?

Answer 54

Adequate payment for their services S329

Question 55

What is Training Defence?

Answer 55

Firms must provide adequate training on ML failure to do so gives the employee a defence S330

Question 56

What is Privileged Circumstances defence?

Answer 56

Client or representative seeking advice S330

Question 57

What is Legal Overseas defence?

Answer 57

Where criminal conduct is abroad and lawful in that country and had it occurred in the UK not punishable by 12 months or more