FLK 1 - Legal Services

When does the authorised disclosure by the offender suffice for money laundering? (During the prohibited act)

1. No relevant knowledge or suspicion when the act was started

2. Disclosure was made as soon as reasonably practicable

3. Disclosure was made on the persons own initiative

Must generally have been A GOOD REASON why disclosure was made during the act and not before the fact

When will the adequate consideration defence in relation to acquisition, use or possession in money laundering NOT apply?

If the value of the work is significantly less than the money received

Knowing or suspecting the goods or services supplied in return for the criminal property help another carry out criminal conduct

When is the offence of prejudicing an investigation committed?

When a person:

• Knows or suspects that a money laundering, confiscation or civil recovery investigation is being conducted or is about to be:

And makes a disclosure to any person likely to prejudice the investigation;

OR falsifies, conceals or destroys docs relevant to investigation or CAUSES that to happen

What is the defence to prejudicing an investigation?

If the person did not know or suspect the disclosure would be prejudicial

If they did not know or suspect the docs were relevant OR

Did not intend to conceal any facts from the person carrying out the investigation

If the disclosure is made by a professional legal adviser of other relevant professional adviser to a client/representative in connection with legal proceedings PROVIDED there is no intention of furthering a criminal purpose

What activities are generally viewed as Regulated under the money laundering regulations?

Buying and selling real property or business entities

Managing client money, securities or other assets

Organising contributions necessary for the creation, operation or management of companies

Creating, operating or managing trusts, companies, foundations or similar structures

Which activities are generally NOT viewed as covered under the money laundering regulations?

Payment on account of costs to legal professional or payment of legal professionals bill

Provision of legal advice

Participation in litigation or ADR

Will writing

Work funded by Legal Services Commission

What should the solicitor do if the nominated officer for money laundering is away?

1. Alternative arrangements such as appointing alternative or deputy nominated officer OR

2. if not available > report directly to the NCA

What is the exception to timing in relation to carrying out due diligence to prevent money laundering?

1. It is necessary not to interrupt the normal conduct of business; AND

2. There is little risk of money laundering or terrorist financing

NOTE that this exception does NOT apply if the matter is an occasional transaction