Brabners Anti-Money Laundering Quiz

What 3 things must you always do when undertaking a Client Due Diligence holistic exercise? (choose all that apply)

Identify the clients

Check the client’s details with the MLRO

Identify whether there is a beneficial owner who is not the client and take measures to verify their identity so that YOU are satisfied that you know who the Beneficial Owner is.

Verify them i.e., obtain evidence which supports this claim of identity.

What should you do when conducting Due Diligence on a private individual and the search it’s a refer or fail? (choose the correct answer)

Conduct Enhanced Due Diligence

Inform the MLRO

Reject the individual

Still accept the individual

A fee earner has made an internal suspicious activity report to your MLRO about a client. What can you tell that client?

Only tell your client with the approval of your Fee Earner

Only tell your client if you think he is honest

You should always tell your client about the report

What must you obtain from a private and unlisted company (PLC’s) when conducting Due Diligence? Select all that apply.

Company name

Check a recent utility bill to verify company address

The Law to which it is subject and its constitution.

Get a reference from someone who knows your client well

Registration number

5. A fee earner has reported that funds in your client account may be the proceeds of crime. What do they do now?

Return the funds from whence they came

Wait seven days, and if you hear nothing, proceed with the transaction

Do nothing with these funds without clearance from your Fee Earner

Who can be prosecuted for failing to report suspicious circumstances?

Only the firm’s MLRO

Anyone who carries out or is involved with regulated work

Only the partners in the firm may be prosecuted, but not employees

What need to be checked for a wholly owned subsidiary public company (PLC)? Choose the correct answer.

You will require evidence of the parent/subsidiary relationship e.g., last filed annual return/confirmation statement, etc.

You only have to check the company name, registration number and office, and principal place of business

What Due Diligence checks must be completed when the client is a public overseas company that is on a regulated market?

You only need to company name and address

You have to check company name, registration number, registered office, place of business, business practices, names of board of Directors or senior managers responsible for the operations

You only have to check the company name, registration number and office, and principal place of business

Which of these does the law usually require you to do when acting for clients? Select all that apply.

Report suspicions of money laundering

Keep records of your dealings

Refuse to act for people with a criminal record

Check their identity and verify this

Who should you speak to if you are unsure of the Client Due Diligence requirements for a Trust? (select the correct answer)

The MLRO

The Fee Earner

The Head of Department for Private Client

The Managing Partner