RES exam question on AML / CFT: A salesperson studying the Corruption, Drug Trafficking and Other Serious Crimes…
A salesperson studying the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) is asked which statement about it is correct, since she had wrongly assumed the Act applies only to drug money. The correct statement is that:
- AIt covers only drug-trafficking offences under the Misuse of Drugs Act, not other serious crimes
- BIt criminalises dealing with the benefits of a wide range of serious offences, not just drug offences
- CA person who merely suspects, but is not certain, that funds are criminal has no duty to report
- DInforming a transaction counterparty that a Suspicious Transaction Report has been filed is a permitted courtesy
Show answer & explanation
Answer
B. It criminalises dealing with the benefits of a wide range of serious offences, not just drug offences
Explanation
The CDSA reaches the proceeds of a broad list of serious crimes, not just drugs. A reasonable suspicion (not certainty) triggers the reporting duty, and telling a counterparty about an STR is tipping off — an offence.
Study the concept behind this question: AML/CFT for Property Agents: CDD, Source of Funds & STR
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