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If an administrator fails to report money laundering concerns, what is the maximum potential prison sentence?

5 years.

The correct answer is based on the provisions of the Proceeds of Crime Act 2002 (POCA) in the UK, which addresses money laundering offenses. An administrator, or any individual, who fails to report knowledge or suspicion of money laundering can face serious legal consequences, including imprisonment.

Specifically, if someone does not comply with their duty to report, the maximum potential prison sentence can be up to five years. This reflects the seriousness with which the law treats non-compliance regarding money laundering activities, as failing to report can facilitate financial crime and undermine efforts to combat it.

The other options presented indicate longer sentences that apply to more severe offenses or breaches of the law, such as active facilitation of money laundering or other serious criminal activities. The five-year maximum for failure to report reflects a balance between accountability and the understanding that not all non-reports equate to complicity or overt criminal intent. Understanding these nuances is essential for recognizing the responsibilities placed on individuals in roles connected to financial oversight or compliance.

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7 years.

3 years.

14 years.

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