Financial Crime Prevention Flashcards

What is the Sanctions and Anti-Money Laundering Act 2018?

Answer: UK legislation providing the framework for financial sanctions and AML measures post-Brexit

The Sanctions and Anti-Money Laundering Act 2018 provides the UK with its own domestic framework for implementing financial sanctions and anti-money laundering measures following Brexit.

What is the role of the Joint Money Laundering Steering Group (JMLSG)?

Answer: To produce industry guidance on anti-money laundering and counter-terrorist financing for the UK financial sector

The JMLSG produces practical guidance for firms in the UK financial sector on how to comply with their AML and CTF obligations. Its guidance is approved by HM Treasury.

What is 'terrorist financing' and how does it differ from money laundering?

Answer: Terrorist financing involves providing funds for terrorism regardless of whether the funds are legitimate, while money laundering involves disguising criminal proceeds

While money laundering involves disguising the proceeds of crime, terrorist financing involves providing or collecting funds for terrorist purposes. Crucially, terrorist financing can involve legitimate funds, making it distinct from money laundering.

What is a 'consent SAR' (also known as a Defence Against Money Laundering or DAML)?

Answer: A SAR requesting consent from the NCA to proceed with a transaction that the reporter suspects involves criminal property

A consent SAR (DAML) is submitted when a person suspects a transaction involves criminal property and seeks consent from the NCA to proceed with it. The NCA must respond within a specified timeframe.

What is the 'moratorium period' when a consent SAR is submitted?

Answer: The NCA has 7 working days to refuse consent, followed by a further 31 calendar days moratorium if refused

When a consent SAR is submitted, the NCA has 7 working days to refuse consent. If refused, there is a further 31 calendar day moratorium period during which the NCA can apply to the court for a restraining order.

What is 'wilful blindness' in the context of financial crime?

Answer: Deliberately avoiding knowledge of facts that would indicate criminal activity

Wilful blindness occurs when a person deliberately avoids acquiring knowledge of suspicious facts. Courts may treat wilful blindness as equivalent to actual knowledge of money laundering, potentially leading to criminal liability.