ICAEW ARF · Chapter 11 · Question 1 of 10
In which of the following situations is an accountant REQUIRED to disclose confidential client information?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) When the accountant knows or suspects that the client is engaged in money laundering and must make a report
Explanation
Confidential information must not be disclosed without proper authority unless there is a legal or professional right or duty to disclose. UK law requires accountants in the regulated sector to report knowledge or suspicion of money laundering. Requests from journalists, investors or other clients do not create a duty to disclose and could breach confidentiality.
More Confidentiality, money laundering and regulation MCQs
- Q3A criminal deposits cash from drug dealing into several bank accounts in small amounts. Which stage of money laundering does this…
- Q4An audit senior wants to continue working at home on a client's payroll file, which contains employees' names, salaries and bank details…
- Q5An accountant reports a suspicion of money laundering by a client to the firm's money laundering reporting officer. Afterwards the…
- Q6How should an employee of an accountancy firm report a suspicion of money laundering by a client?
- Q7Which of the following statements about the offence of failing to report money laundering by a person in the UK regulated sector is correct?