Money laundering

A senior manager in an organisation to purchase goods for his own use, using the company credit card. Provided the managing director authorises it is this:

• Ethical

• Unethical

If someone is found guilty of money laundering, the penalty is up to 14 years' imprisonment and/or an unlimited fine.

• True

• False

1. What report would a MLRO submit to the National Crime Agency if they had suspicions regarding a client?

• Suspicious Actions Report

• Specific Activity Report

• Suspicious Activity Report

• Suspicious Activity Register

Who is responsible for sending SAR's to the National Crime Agency?

• Line Manager

• Money Laundering Reporting Officer

• Financial Director

• Company secretary

Which of the following is not a common stage of money laundering?

• Placement

• Settlement

• Integration

• Layering

A client asking you to reduce the amount of tax payable in return for a significant discount at his jewellers shop could be considered what?

• Failure to disclose

• Prejudicing an investigation

• Fraud

• Bribery

When a relationship between an accountant and a client ends, the requirement for client confidentiality also ends.

• True

• False

1. An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of evidence is known as what?

• Being nosey

• Professional scepticism

• Money laundering

• Materiality

1. If you are unsure whether you can accept a gift from a client at work, what is NOT a step you could take to clarify if it would be acceptable?

• Ask your line manager

• Check internal policies

• Call professional body helpline

• Tell the client to meet you in the car park after work to hand over the gift

Leon owns a quarter share in a restaurant business with his wife Tia, her sister, Una and Una's husband. Before taking on Leon as a new client on whom should you carry out CDD checks?

• Leon only

• All 4 owners

• Leon and Tia only

• None