Skip to content

ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour

Dev runs a small import business and sells a car for cash. He later learns the buyer, Karl, obtained the cash by drug dealing. At the time of sale Dev had no knowledge or suspicion of this. Under typical money laundering rules, what is Dev's position?

Dev is not guilty of the principal laundering offence. Money laundering offences generally require knowledge or suspicion that the property represents proceeds of crime. Dev had neither when he accepted the cash, and laundering is not a strict liability offence.

  1. AGuilty of laundering, because he received proceeds of crime
  2. BNot guilty of the principal laundering offence, because he lacked knowledge or suspicionCorrect
  3. CGuilty, because laundering is an offence of strict liability
  4. DGuilty, because he failed to carry out customer due diligence

Explanation

The principal laundering offences require knowledge or suspicion (or reasonable grounds for it) that property is criminal property. Dev had neither, so no principal offence arises. Laundering is not strict liability, and due diligence failure is a regulatory matter for regulated businesses, not stated here.

Did you get it right without looking?

One question tells you little. A timed set on Fraudulent and criminal behaviour shows your real accuracy, how long you take and where you lose marks.

Practise Fraudulent and criminal behaviourFree diagnostic mock

More Fraudulent and criminal behaviour questions