Money Laundering

Money Laundering

Didn't find your answer?

I have a client who dismissed a key Director, as part of the compromise agreement the ex employee is insisting the reason for terminating the employment is redundancy, because he can then claim on his mortgage policy.

I have said they cannot sign it as it will be fraud, which the client fully agrees with but the ex employee is being awkward and is refusing to budge. I also feel I would have to make a money Laundering report. Am I correct.

Many thanks
Yvette

Replies (1)

Please login or register to join the discussion.

David Winch
By David Winch
24th May 2006 12:36

In my view, a report IS required NOW

Yvette

In my view a report to your MLRO (and by him or her to SOCA) under sections 330 and 331 Proceeds of Crime Act 2002 is now required in these circumstances.

If your client agreed to dishonestly describe the termination as a redundancy then, in my view, the client would commit an offence under section 328, which includes "entering into or becoming concerned in an arrangement which he knows or suspects facilitates (by whatever means) the acquisition . . . of criminal property by . . . another person".

This is because he would be assisting the ex-director to fraudulently obtain money from his insurers.

The ex-director is inciting your client to commit the section 328 offence. Such incitement falls within the definition of "money laundering" in section 340(11) and so is reportable. So the requirement to make a report has already been triggered.

If you are an MLRO you can get confidential one-to-one email support, information and NewsAlerts from my website www.mlrosupport.co.uk.

David
[email protected]

P.S. There is a strong possibility that no action would be taken by the police following your report (but that is a whole different topic!).

Thanks (0)