UK Financial Regulation (IOC) Quiz 04

Last Updated: June 2024

Table of Contents

UK Financial Regulation (IOC)

-understand the obligations on firms for adequate training of
individuals on money laundering (MLR 2017 Section 24)
-understand the three stages of money laundering
-understand the main offences set out in POCA Part 7 Sections
327, 328, 329, 330, 333A, 342 [assistance i.e. concealing,
arrangements, acquisition, use and possession; failure to disclose;
tipping off in the regulated sector] and the implications of Part 7
regarding the objective test in relation to reporting suspicious
transactions; that appropriate disclosure [internal for staff and to
the National Crime Agency for the firm] is a defence
– understand the approach covered by the Senior Management
Arrangements, Systems and Controls Sourcebook [SYSC], in
particular, the systems and controls that the FCA and PRA expect
firms to have adopted, the role of the Money Laundering Reporting
Officer and Nominated Officer. [SYSC 3.2.6, 3.2.6 (A)-(J), SYSC
-(FCA)]
– understand the standards expected by the JMLSG Guidance
particularly in relation to:
• Risk-based approach
• Requirements for directors and senior managers to be
responsible for money laundering precautions
• Need for risk assessment
• Need for enhanced due diligence in relation to politically
exposed persons [JMLSG 5.5.1 – 5.5.36]
• Need for high-level policy statement
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• Detailed procedures implementing the firm’s risk-based
approach [JMLSG 1.1-1.8, 1.53 – 1.59, 2.1-2.21, 4.3 – 4.77]
• Financial Sanctions Regime [JMLSG Part III 5.3.54 – 5.3.62]
3.4.8 understand the money laundering aspects of know your customer:
• JMLSG 5.1.1 – 5.1.15
• credit reference agencies
– understand the importance of ongoing monitoring of business
relationships and being able to recognise a suspicious transaction
and the requirement for staff to report to the MLRO and for the firm
to report to the National Crime Agency (NCA)
-know the role of the Financial Action Task Force (FATF)
-know what activities are regarded as ‘terrorism’ in the UK
[Terrorism Act 2000 Part 1], the obligations on regulated firms
under the Counter-Terrorism Act 2008 [money laundering of
terrorist funds] [part 5 section 62 and s.7 parts 1-7] and the AntiTerrorism Crime and Security Act 2001 Schedule 2 Part 3
[Disclosure of Information] and where to find the sanction list for
terrorist activities
-understand the importance of preventative measures in respect of
terrorist financing and the essential differences between
laundering the proceeds of crime and the financing of terrorist acts
[JMLSG Preface 9] and the interaction between the rules of the
FCA (The Financial Crime Guide), the PRA, the Terrorism Act
2000 and the JMLSG Guidance regarding terrorism [JMLSG
Preface 27, 28, 29]
-Bribery and Corruption
On completion, the candidate should:
-know the main purpose of the Bribery Act 2010 and the categories
of offences covered in Sections 1 – 7 Bribery Act 2010
-Record Keeping Requirements
On completion, the candidate should:
-know record keeping requirements in relation to:
• Anti – Money Laundering (AML)
• Combating the Financing of Terrorism (CFT)
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