ACCA Applied Knowledge · Business and Technology · Regulation and financial crime
An accountant, Priya, files an internal suspicion report about a client's unusual transactions. Later, she tells the client that the report has been made and that an investigation may follow. Which offence has Priya most clearly committed?
Priya has committed tipping off. Tipping off means telling a person that a suspicious activity report has been made or that an investigation is likely, which may prejudice the inquiry. She did report, so failure to disclose is not the offence.
- ATipping offCorrect
- BStructuring
- CFailure to disclose
- DPlacement
Explanation
Tipping off is informing a person that a suspicion report has been made or an investigation is under way, in a way likely to prejudice it. Priya did make the report, so failure to disclose does not apply. Structuring and placement are laundering techniques, not her conduct.
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