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

Which of the following best describes the offence of assisting or becoming concerned in an arrangement relating to criminal property, as it applies to an audit firm?

The arranging offence occurs when a firm helps someone retain, use or control criminal property while knowing or suspecting it is criminal property. Failing to risk-assess clients is a compliance breach, and making a proper report is protected rather than an offence, so only the first description fits.

  1. AHelping another person to retain or use criminal property when the firm knows or suspects it is criminal propertyCorrect
  2. BFailing to complete a client risk assessment before accepting the engagement
  3. CReporting a suspicion to the national authority without the client's consent
  4. DCharging a higher audit fee for a high-risk client

Explanation

The principal offences include concealing, arranging and acquiring, using or possessing criminal property. The arranging offence involves facilitating retention or use of criminal property with knowledge or suspicion. Poor risk assessment is a compliance failure, and reporting a suspicion is a protected disclosure, not an offence.

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