Anti-money laundering
Anti-money laundering comprises legal and organisational measures aimed at preventing and detecting the concealment or movement of criminal proceeds. Depending on the jurisdiction and risk, relevant measures include customer due diligence, identifying beneficial owners, ongoing monitoring, reporting suspicious activity and maintaining records. Accountants apply their legal duties, ethical requirements and firm procedures, which vary between jurisdictions.
Worked example
Before accepting a new client, a firm verifies its beneficial owners, assesses the engagement’s money-laundering risk and escalates suspicious information through its reporting procedures.
Common mistake
Money laundering is the criminal activity; anti-money laundering refers to measures designed to combat it.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |
| ACCA | LW (ENG) | Supporting | September 2026–June 2027 |
| ACCA | LW (GLO) | Supporting | September 2026–June 2027 |