Lesson 2: Taxation Services Flashcards Preview

AAT Level 3 - Professional Ethics > Lesson 2: Taxation Services > Flashcards

Flashcards in Lesson 2: Taxation Services Deck (10)
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1
Q

What is the International Federation of Accountants (IFAC)?

A

Global organisation for the accountancy profession

Works with 167 members in 127 countries to protect the public interest by encouraging high quality practices

Represents 2.5 million accountants

2
Q

What is the International Ethics Standards Board for Accountants (IESBA)?

A

Responsible for setting basic ethical code for accountants that underlines the ethical codes of various accounting bodies, e.g AAT

Develops high quality ethical standards around the world

Requires quality and consistency in order to serve the public interest

3
Q

What is the Public Interest Oversight Board (PIOB)?

A

Oversees public interest cases for IFAC

Its purpose is to increase confidence of investors and others that the activities carried out by IFAC and IESBA are responsive to the public interest

Transparent as meetings are open to the public

4
Q

What is money laundering?

A

This is where the proceeds of crime are converted into assets which appear to have a legitimate origin so they can be retained or recycled into more criminal activity.

5
Q

What legislation is there in relation to money laundering?

A

Money Laundering Regulations 2007

Proceeds of Crime Act 2002

Terrorism Act 2000

6
Q

What is a money laundering reporting officer (MLRO)?

A

They are a person within a firm of accountants who has been nominated to receive and assess internal reports of knowledge or suspicions of money laundering or terrorist financing.

7
Q

What happens if the member is employed by a business that does not have a MLRO?

A

The member must make a suspicious activity report (SAR) directly to the Serious Organised Crime Agency (SOCA).

8
Q

What is ‘tipping off’?

A

This occurs when a person, who knows or suspects that a Suspicious Activity Report has been made to SOCA, tells the person(s) mentioned in the report that the report has been made. This lets them know that SOCA is about to make an investigation.

9
Q

What is prejudicing an investigation?

A

This occurs where a person:
- knows or suspects that a money laundering, confiscation of civil recovery investigation is being conducted or is about to be conducted; and

  • they make a disclosure that will likely prejudice the investigation; or
  • they falsify, conceal or destroy documents relevant to the investigation
10
Q

What are the penalties?

A

Money laundering / terrorist financing - 14 years in prison and unlimited fine

Tipping off - 2 years in prison and unlimited fine

Failure to disclose - 5 years in prison and unlimited fine

Prejudicing an investigation - 5 years in prison and unlimited fine