AML Multiple Choice Questions: April 2024

Quiz for the webinar hosted by For Legal.

https://www.formediagroup.co.uk/forlegal/webinars/aml-pwras-client-matter-risk-assessments

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* 1. Respondent Details

First Name

Last Name

Company Name

Job Title

Email Address

Phone Number

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* 2. Pursuant to the SRA’s Warning Notice on Client & Matter Risk Assessments, a firm’s client and matter risk assessments need to include

(a) Corroborative evidence of source of wealth enquiries

(b) A graded system of risk assessment according to a pre-determined formula

(c) An explanation of the rationale for the risk judgment made in any particular case

(d) An explanation of the rationale for the risk judgment made in any high risk case only

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* 3. Under the Home Office’s national risk assessment, law firm and other staff must ideally be

(a) Honest, if unwitting

(b) Vigilant at all times

(c) Negligent

(d)Certified to Cyber Essentials

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* 4. Your firm is acting for a foreign client in the sale of her home in Mayfair, and the associated purchase of a penthouse apartment in Brighton. You are in possession of funds in your client account, but because of something the client mentioned, you become suspicious about from where the client derived their family wealth. You should..

(a) Report the natter to OFSI immediately

(b) Report the matter to the Police immediately

(c) Report the matter officially to your firm’s MLRO immediately

(d) Report the matter to the Fraud Squad immediately

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* 5. Under the current Legal Sector Affinity Group Guidance Note and its Addendum (LSAG), what kind of checks on the ultimate, individual beneficial owners of entity clients should law firms be undertaking?

(a) No checks are necessary

(b) Identity; risk-sensitive verification only

(c) Identity only

(d) Identity and verification equivalent to private individuals

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* 6. A fee-earner in the commercial conveyancing team is acting for a UK-registered company buying land in Southampton for redevelopment. In her CDD enquiries she has found that the company is a wholly-owned subsidiary of another company registered in Gibraltar. She should

(a) Investigate fully the identity of the ultimate individual beneficial owner behind the corporation in Gibraltar

(b) Stop there, as the client is owned by another corporation that will have CDD processes in place already

(c) Content herself with a broad understanding of the client’s ownership and control structures

(d) Ensure that the holding company is on the Register of Overseas Entities