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

Tomas, an accountant, suspects that a client's transaction involves laundered funds. He tells the client that he has reported his suspicion to the authorities, before any investigation has begun. Which offence has Tomas most likely committed?

Tomas has most likely committed tipping off. He told the client that a suspicion report had been made, which may prejudice an investigation into money laundering. He did not trade securities or run the business, so other offences do not fit.

  1. ATipping off, by disclosing a report so as to prejudice an investigationCorrect
  2. BInsider dealing, by using confidential client information
  3. CFraudulent trading, by carrying on the client's business
  4. DFailure to maintain capital, by reducing the client's share capital

Explanation

Tipping off is alerting a person that a suspicion report has been made or an investigation is likely, in a way that may prejudice it. Tomas has no dealing in securities, and he is not running the client's business, so the other offences do not apply.

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