ACCA Applied Knowledge · Business and Technology · Regulation and financial crime
Which of the following best describes the offence of 'tipping off' in the context of money laundering?
Tipping off is alerting a person that a suspicious activity report has been made or that an investigation is under way, which may prejudice it. It is a separate offence from failing to keep records or breaching cash acceptance policies.
- AFailing to keep client identification records for the required period
- BWarning a person that a suspicion report has been made or that an investigation is under way, so prejudicing itCorrect
- CAccepting a cash payment above the firm's internal limit
Explanation
Tipping off is disclosing to the person concerned, or a third party, that a report has been made or an investigation is under way, in a way likely to prejudice it. Record-keeping failures and cash limits are separate compliance matters.
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