ExpertMedium2 marksMultiple Choice
ACCA · Question 25 · Corporate and Business Law
An accountant working in the regulated sector suspects that a client is laundering money through a complex web of offshore shell companies. The accountant decides not to report this suspicion because they do not have concrete proof. Under the Proceeds of Crime Act 2002 (POCA), has the accountant committed an offence?
An accountant working in the regulated sector suspects that a client is laundering money through a complex web of offshore shell companies. The accountant decides not to report this suspicion because they do not have concrete proof. Under the Proceeds of Crime Act 2002 (POCA), has the accountant committed an offence?
Answer options:
A.
No, because actual proof of money laundering is required before a report can be made.
B.
No, because reporting would breach client confidentiality.
C.
Yes, the offence of tipping off.
D.
Yes, the offence of failure to disclose.
How to approach this question
Identify the obligations of professionals in the regulated sector under the Proceeds of Crime Act 2002 regarding suspicious transactions.
Full Answer
D.Yes, the offence of failure to disclose.✓ Correct
Under Section 330 of the Proceeds of Crime Act 2002, individuals working in the regulated sector (like accountants, lawyers, and bankers) commit a criminal offence if they fail to disclose to the nominated officer (MLRO) or the NCA that they know or suspect, or have reasonable grounds for knowing or suspecting, that another person is engaged in money laundering. Proof is not required; suspicion is the threshold.
Common mistakes
Assuming that client confidentiality prevents reporting, or that absolute proof is required before making a Suspicious Activity Report (SAR).
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