Module 4 · Chapter 10

Declining to Act, Returning Funds and Keeping Records

A firm that cannot finish its checks must stop acting, even when the law would let it go on. This chapter shows how it tells the client, returns money it holds and keeps its records.

≈ 10 min read 8-question test

In this chapter

  • Why a defence from the NCA does not let the firm finish the deal
  • How the firm tells the client it will stop acting, and returns money it holds
  • What the firm keeps, for how long, and who checks it

10.1Declining to act in one paragraph

The NCA did not refuse the firm’s request in time. So the firm has a defence to exchange, complete and return the £500,000. But a defence does not finish the checks. Oliver still has not sent the sale evidence, so the firm cannot finish its enhanced due diligence, and it must stop acting.

The firm tells Merranby the true reason. It sends the £500,000 back where it came from, and it keeps the File for five years.

Key point

A defence is not a clearance. If the checks cannot be finished, the firm stops, whatever the NCA did.

Also in this chapter

  1. Why the firm stops even with a defence
  2. Telling the client the firm will stop
  3. Sending the money back only where it came from
  4. Why the small-sum exemption does not apply
  5. Keeping the records
  6. Your job

Preview

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