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

Which of the following is a required feature of an audit firm's anti-money laundering policies and procedures?

A firm's anti-money laundering procedures must include training so relevant staff can recognise suspicious activity and know how to report it internally. Records must be retained, obligations cover all relevant staff, and clients must not be told of suspicion reports because that is tipping off.

  1. AA rule that staff need not keep client identification records once the audit report is issued
  2. BA programme of training so that relevant staff recognise suspicious activity and know the internal reporting procedureCorrect
  3. CA policy that only partners, not other staff, are subject to reporting obligations
  4. DA procedure that clients are told of all internal suspicion reports within a week

Explanation

Firms must have policies including staff awareness and training on recognising suspicious transactions and reporting internally. Records of identification and work must be retained for a prescribed period, not discarded at report date. Obligations apply to all relevant staff, and informing clients of reports would be tipping off.

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