CIMA BA4 · Chapter 4 · Question 6 of 10
An accountant in business suspects that a colleague is laundering money through the company's accounts. To whom should she normally report her suspicion first?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The organisation's money laundering reporting officer (MLRO) or nominated officer
Explanation
Organisations within the regulated sector appoint an MLRO (nominated officer) to receive internal reports and decide whether to report externally to the relevant authority. Reporting to the suspect would risk tipping off, and disclosure to customers or the press would breach confidentiality and could prejudice an investigation.
More Ethical conflict, whistleblowing and money laundering MCQs
- Q8In the UK, which of the following statements about legal protection for whistleblowers is correct?
- Q9A management accountant's manager instructs her to reclassify revenue expenditure as capital expenditure so that a profit target is met…
- Q10Which of the following situations is most likely to involve the 'layering' stage of money laundering?
- Q1What is the first step a member should normally take when trying to resolve an ethical conflict?
- Q2Which of the following is the best description of 'whistleblowing'?