ICAEW SE · Chapter 8 · Question 13 of 18
An accountant has made an internal report of suspected money laundering about a client to the firm's money laundering reporting officer (MLRO). The client then asks the accountant why the firm has delayed a transaction. What should the accountant do?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Avoid saying anything that might alert the client to the report or any investigation, and seek guidance from the MLRO
Explanation
Disclosing to the client that a report has been made, or that an investigation may be under way, could amount to the offence of tipping off and could prejudice an investigation. The accountant should be careful in communications and seek guidance from the MLRO. Asking the client directly about criminal funds also risks tipping them off.
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