Legal Considerations Members in Practice (MIP) Members in Business (MIB)

Criminal Law What is the difference between the two? Civil Law Justice

Criminal Law Results in a prosecution in a criminal court by the state of the accused for a breach of the law, such as for the crimes for theft, money laundering, terrorist financing, bribery and fraud. The consequence is punishment of the accused, if found guilty, by imprisonment or a fine.

Civil Law Results in a claim in a civil court by a claimant against a defendant to enforce rights that arose between them (under contract, negligence and trust); there is no involvement by the state. The consequence is punishment of the party who loses but some form of compensation for the party who wins.

Risk Unexpected VARIABILITY or VOLATILITY of future returns The effect of UNCERTAINTY on objectives

Risk Discuss and list risks which you may face both business and personal 5 Minutes

Types of Risk Social People Technological Legal & Regulatory Political Disaster Systems Economic Litigation risk Reputational RISK

.. the risk of losses resulting from inadequate or failed internal processes, people and systems or external events Operational Risk Money Laundering Unethical behaviour Fraud/TheftSustainabilityBribery

“to move illegally acquired cash through financial systems so that appears to be legally acquired” Money Laundering Money laundering is defined widely, and includes  all forms of handling or possessing criminal property, including  possessing the proceeds of one’s own crime  facilitating any handling or possession of criminal property.

Acquiring, using or possessing criminal property Handling proceeds of crime (theft, fraud, tax evasion) Knowing involved with criminal/terrorist property Investing proceeds of crime into financial products or acquisition of assets Transferring criminal property Activities relating to Money Laundering

The legislation and regulations relating to money laundering, or anti-money laundering can be found in the following laws and regulations: The Proceeds of Crime Act 2002 (POCA) The Terrorism Act 2000 (TA) The Money Laundering Regulations 2007 Money Laundering

Is the provision or collection of funds from legitimate or illegitimate sources with the intention or in the knowledge that they should be used in order to carry out any act of terrorism. Maximum penalty Unlimited fine and/or 14 years in prison Terrorist Financing

Suspicious Activity Report (SAR) should be sent to SOCA - Serious Organised Crime Agency Money Laundering Reporting Officer OR Direct to SOCA Disclosure

As a minimum should include:-  Suspect person’s details  How the money is being laundered  Whereabouts of the laundered property if known  Details of the person making the report Any suspicion of a client should be reported in a suspicious activity report (SAR) You may be a big enough organisation to have a Money Laundering Reporting Officer who you should talk to rather than going direct to Serious Organised Crime Agency (SOCA) Required Disclosure

Customer Due Diligence (CDD)  When establishing a business relationship  When carrying out an occasional transaction (i.e. involving €15,000, or the equivalent in sterling, or more)  Where there is a suspicion of money laundering or terrorist financing  Where there are doubts about previously obtained customer identification information  At appropriate times, to existing clients, on a risk- sensitive basis.

If a client has failed to disclose an omission or error in tax affairs this should go to SOCA If you think that a fraud has been committed you also need to go to the police If you are in a large organisation there may be a Money Laundering Policy If………

The Bribery Act Bribery Act 2010 covers criminal law. The person offering the inducement is guilty of the offence of bribery. Equally the person accepting the inducement can also be prosecuted under the act.

The Bribery Act The four key Bribery Act offences are: Bribing another Receiving a bribe Bribing a foreign official Failing to prevent a bribery

Definition: an intentional deception made for personal gain or damage to another individual. Fraud Act classes of fraud:- Fraud by false representation Fraud by failing to disclose information Fraud by abuse of position Fraud Can you write a definition of each classification?

Failure to disclose Maximum penalty 5 years and/or a fine Tipping off The offence of Tipping off is making any disclosure that is likely to prejudice any investigation that might follow Maximum penalty 5 years and/or a fine POCA – Proceeds of Crime Act

1. Definitions of: Protected Disclosure Authorised Disclosure Fraud Act classes of fraud:- Fraud by false representation Fraud by failing to disclose information Fraud by abuse of position 2. Complete handout questions (answers on the Wiki) To do......