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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Money laundering

During an audit, the engagement partner of Delta & Partners suspects a client's finance manager is laundering proceeds. The partner files a suspicious activity report with the national authority, and then the audit senior tells the finance manager about the report to 'give them a chance to explain'. Under typical money laundering legislation covered in the AAA syllabus, what offence has most likely been committed?

The senior has committed tipping off. Telling the suspected person that a suspicious activity report has been filed is likely to prejudice an investigation, and this is an offence separate from failing to report, which does not apply since the report was made.

  1. AFailure to report
  2. BTipping offCorrect
  3. CConcealing criminal property
  4. DAcquiring criminal property

Explanation

Tipping off is disclosing to a person that a report has been made or that an investigation is under way, in a way likely to prejudice it. The senior's disclosure to the suspect after the report was filed fits this. Failure to report relates to not making a disclosure, which the partner did make.

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