Fraudulent Behaviour

Insider dealing
1. Inside information
  1. not public
  2. has a price
  3. particular
  4. specific
2. inside source
  1. employees
  2. Directors
  3. Shareholders
  4. Solicitors/ Accountants
3. Criminal Justice Act 1993 (part V)
  1. Consequenses
    1. Fine (<statutory maximum)
    2. prison (max 6m)
    3. breach of Director's fiduciary duties
  2. Offenses
    1. Using inside info to deal in price-affected securities
    2. Encouraging others to deal in price-affected securities
    3. Disclosing inside information to anyone other than in the proper performance of the employment, office or profession
Money Laundering
1. the process by which the proceeds of crime are converted into assets which appear to have a legal rather than an illegal source
2. Proceeds of Crime Act 2002
  1. Offences
    1. Laundering
      1. to conceal, disguise, convert, transfer, or remove criminal property from UK
        concealing or disguising criminal property includes concealing or disguising its nature, source, location, disposition, movement or ownership, or any rights connected with it
        'Criminal property' is defined as property which the alleged offender knows (or suspects) constitutes or represents benefit from any criminal conduct
        'Criminal conduct' is defined as conduct that constitutes an offence in any part of the UK or would constitute an offence in the UK if it occurred there
    2. Failure to report
      1. failing to disclose knowledge or suspicion of money laundering where they know or suspect, or have reasonable grounds for knowing or suspecting, that another person is engaged in laundering the proceeds of crime
        only relates to indiduals, such as accountants, who are acting in the course of business in the regulated sector
        required to make disclosure to MLRO within their organisation, or to SOCA, as soon as is practicable
    3. Tipping off
      1. making a disclosure likely to prejudice a money laundering investigation.
  2. Penalties
    1. Laundering
      1. Prison (max 14y)
    2. Failure to report/ Tipping off
      1. prison (max 5y)
      2. fine
3. 3-stage process
  1. Placement
    1. initial disposal of proceeds of criminal activity into apparently legitimate business activity or property
    2. Layering
      1. transfer of money from business to business, or place to place, in order to conceal its initial source
      2. Integration
        culmination of previous procedure through which the moey takes on the appearance of coming from a legitimate source
Market Abuse
1. Financial Services and Markets Act 2000
  1. behaviour in relation to any qualifying investments; likely to be regarded as falling below standard reasonably expected of a person in that position and falls into one of three categories:
    1. based on information not generally available which would be regarded as relevant in regard to terms on which to deal
    2. is likely to give a false or misleading impression of market value
    3. is regarded as likely to distort the market
2. Code of Market Conduct (FSA)
  1. insider dealing
  2. improper disclosure
  3. misuse of information
  4. manipulating transactions
  5. manipulating devices
  6. dissemination
  7. distortion/ misleading behaviour
3. civil
Fraudulent Trading
1. a Co's business is carried on with the intent to defraud creditors or for any fraudulent purpose
  1. Civil offence (Insolvency Act 1986)
  2. Criminal offence (Companies Act 2006)
Wrongful Trading
Bribery
1. Offer and acceptance
2. Corporate Offence
3. Bribery Act 2010
Phoenix Companies
Fraud
Transactions at undervalue/ preference

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Fraudulent Behaviour

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	Erstellt von Tim Mitchell vor fast 11 Jahre