An accountant in practice discovers that a client is involved in money laundering. Which statement about disclosure of this information is correct?

Correct answer: A) Disclosure is required by law, so reporting it in line with anti-money laundering legislation does not breach the principle of confidentiality

Explanation

The Code recognises that disclosure may be required by law, for example under anti-money laundering legislation. In the UK, an accountant in the regulated sector must report knowledge or suspicion of money laundering, usually via the firm's money laundering reporting officer. Asking the client's permission would risk tipping off, and public disclosure is not appropriate.