ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour
Orlin Bank's compliance officer, Sue, receives an internal report from a clerk who suspects a customer is laundering funds. Sue considers the evidence weak and takes no action, without recording her reasons or reporting externally. The suspicion later proves well founded. Which statement is most accurate?
Sue may be guilty of failing to disclose. A nominated officer in the regulated sector must report to the authorities where there are reasonable grounds to suspect laundering. Inaction on a well-founded internal report is an offence, and personal gain is not needed.
- ASue has no liability, because only the clerk had the suspicion
- BSue may commit an offence of failing to disclose, if she had reasonable grounds to suspect and did not report to the authoritiesCorrect
- CSue is liable only if she gained personally
- DSue is liable only for tipping off
Explanation
Nominated officers in the regulated sector must consider internal reports and pass them to the authorities where they know, suspect or have reasonable grounds to suspect laundering. Failure to do so can be an offence. Personal gain is not required, and no disclosure to the customer is described, so tipping off does not apply.
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