ACCA Strategic Professional · Advanced Audit and Assurance (International) · Money laundering
An audit partner suspects that a client's director is laundering proceeds of crime. The partner discusses the suspicion with the director to ask for an explanation before deciding whether to report to the national authority. Which money laundering offence is the partner most at risk of committing?
The partner risks tipping off. Discussing the suspicion with the suspected launderer may alert them and prejudice a possible investigation, which is an offence in most anti-money laundering regimes. The auditor should instead consider reporting to the firm's money laundering reporting officer or the national authority without alerting the director.
- AFailure to maintain audit documentation
- BTipping off, by disclosing information that may prejudice an investigationCorrect
- CConcealing criminal property, by retaining the audit file
- DAcquiring criminal property, by accepting the audit fee
Explanation
Tipping off is the offence of alerting a suspect that a report has been made or an investigation is under way or contemplated, prejudicing it. Raising the suspicion directly with the director risks this. The other options do not describe the conduct, and fee receipt would be a separate issue only if the fee itself were known or suspected to be criminal property.
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