(a) Prepare briefing notes to be used at your training session in which you: i. Explain the term ‘money laundering’. Illustrate your explanation by explaining the three stages of the money laundering process. ii. Explain the policies and procedures that a firm of Chartered Accountants should establish in order to meet its responsibilities in relation to money laundering.
Many countries have now made money laundering a criminal offence. In some countries, such as the UK, Australia, Singapore and the USA, the criminal offences include those directed at accountants. In the UK, the basic requirements are for accountants to keep records of clients’ identity and to report suspicions of money laundering to the National Crime Agency (NCA). These obligations apply both to firms and to individuals. A firm must establish anti-money laundering programmes which help to reduce to the possible barest minimum, the impact of money laundering on the firm. There are specific regulatory obligations imposed on accountants and auditors in relation to detecting and reporting money laundering activities. As the audit manager of Queenstar Consults, you have been asked to provide a training session to the new audit juniors on auditors’ responsibilities in relation to money laundering. Required: (a) Prepare briefing notes to be used at your training session in which you: i. Explain the term ‘money laundering’. Illustrate your explanation by explaining the three stages of the money laundering process. ii. Explain the policies and procedures that a firm of Chartered Accountants should establish in order to meet its responsibilities in relation to money laundering.
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