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

Which of the following measures is most directly aimed at preventing money laundering through a company's business?

Customer due diligence and reporting suspicious transactions is the measure directly aimed at preventing money laundering, since anti-money-laundering rules require firms to verify clients, keep records and report suspicions to the authorities. The other options concern governance or capital, not laundering.

  1. AAppointing an additional non-executive director to chair the audit committee
  2. BCarrying out customer due diligence and reporting suspicious transactions to the authoritiesCorrect
  3. CIncreasing the share capital of the company
  4. DHolding the annual general meeting earlier in the year

Explanation

Anti-money-laundering regimes require customer due diligence, record keeping and reporting of suspicious activity. Governance and capital changes do not directly address laundering of criminal proceeds.

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