LW H Corporate fraudulent and criminal behaviour

Which of these is inside information?

• 1 A rumour in the newspaper
• 2 General information about the economy
• 3 Public financial statements
• 4 Specific, non-public information that would significantly affect the price of securities

What is money laundering?

• 1 Dealing with the proceeds of crime so that they appear legitimate
• 2 Overstating profit in the financial statements
• 3 Paying tax late
• 4 Making a payment to a supplier early

Customer due diligence means:

• 1 Identifying and verifying a customer and understanding the business relationship
• 2 Giving the customer a discount
• 3 Reporting all customers to the police
• 4 Checking the customer's credit limit only

A company can commit a bribery offence if it fails to:

• 1 Hold an AGM
• 2 Prevent bribery by a person associated with it
• 3 Appoint an auditor
• 4 Pay its suppliers on time

Fraudulent trading requires:

• 1 Only that the director made a mistake
• 2 Only that the company was insolvent
• 3 Intent to defraud creditors or another fraudulent purpose
• 4 That the company has made a loss

A director continues to trade when there was no reasonable prospect of avoiding insolvent liquidation and takes no steps to minimise creditor loss. This is:

• 1 Wrongful trading
• 2 Market abuse
• 3 Money laundering
• 4 Insider dealing

Tipping off in the context of money laundering means:

• 1 Giving a discount to a client
• 2 Reporting a transaction to the authorities
• 3 Refusing a customer's business
• 4 Warning a person that they are under suspicion, which may be an offence