Offences part 2
Offences part 2
The failure to disclose offence for MLROs
There is a corresponding offence which the MLRO or other designated person can commit if he or she fails to properly pass on your suspicions to the National Crime Agency (“NCA”).
This offence is punishable by up to 5 years’ imprisonment or a fine and can be committed by those working within law firms and other businesses conducting work relating to financial matters
Tipping off and prejudicing an investigation offences
Once a suspicion has been reported to the MLRO or other designated person, care must be taken to avoid committing a tipping off or prejudicing an investigation offence. If it is likely that disclosure will prejudice an investigation, it will be a criminal offence to disclose to a third party that:
an internal report has been made to the MLRO or other designated person
an external report has been made to the NCA, the police or HM Revenue and Customs
an investigation into a money laundering offence is being contemplated or carried out
These offences are known as “tipping off” and carry a maximum sentence of 2 years’ imprisonment.
Tipping off and prejudicing an investigation offences
It should be noted that these offences can be committed even if a suspicious activity report has not actually been made or even where you are unaware that one has been submitted.
Note: It is always an offence to falsify, conceal, destroy or otherwise dispose of documents which are relevant to the investigation.
The Terrorism Act
Lastly, the principal terrorism offences include:
- involvement in fundraising money or other property which may be used for terrorist purposes
- use or possession of money or other property for terrorist purposes
- becoming involved in an arrangement which makes money or other property available to a third party for terrorist purposes
