ACCA Applied Knowledge · Business and Technology · Regulation and financial crime
An employee of a bank handles a large cash deposit from a customer and suspects it represents the proceeds of crime. Which action is most consistent with anti-money laundering requirements?
The employee should report the suspicion internally to the money laundering reporting officer and avoid alerting the customer. Anti-money laundering rules require suspicions to be reported, and tipping off the customer is itself an offence, so silence or confronting the customer is wrong.
- AReport the suspicion internally to the nominated money laundering reporting officer without tipping off the customerCorrect
- BTell the customer that the transaction is being investigated so that they can explain
- CRefuse to process the deposit and say nothing to anyone
- DProcess the deposit and wait for the customer to confirm the source of funds
Explanation
Staff must report suspicions promptly to the MLRO, who decides whether to report to the authorities. Tipping off the customer is an offence, and staying silent or simply processing the transaction fails the reporting duty.
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