ICAEW BL · Chapter 13 · Question 10 of 10
Under the Proceeds of Crime Act 2002, a person working in the regulated sector commits the offence of failing to disclose if they do not report money laundering as soon as practicable. Which test of knowledge or suspicion applies?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) They know or suspect, or have reasonable grounds for knowing or suspecting, that another person is engaged in money laundering
Explanation
Under s330 POCA 2002, the regulated sector failure to disclose offence has an objective element. It is committed where the person knows or suspects, or has reasonable grounds for knowing or suspecting, money laundering and fails to report it to the nominated officer (MLRO) or the NCA as soon as practicable. So negligently failing to recognise obvious red flags can be enough. The person need not know the specific underlying crime, have been told to investigate, or have handled the property.
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