Money Laundering Offence : Failure to Disclose
Your client has paid a dividend based on draft accounts. Subsequent adjustments reduce distributable reserves to the extent that the dividend is now illegal.
Report: If there is suspicion of fraud.
Do Not Report: If there is no such suspicion. The payment of an illegal dividend is not a criminal offence under the Companies Act.
Report: If you
Know or suspect that the client intends to dishonestly retain the overpayments. Reasons for such a belief may include:
The client omits overpayments from statements of account.
The client credits the profit and loss account without making any attempt to contact the overpaying party.
Do Not Report: If you
Believe that the client has no dishonest intent to permanently deprive the overpaying party. Reasons for such a belief may include:
Systems operated by the client to notify the customer of overpayments.
Evidence that requested repayments are processed promptly.
Evidence that the client has attempted to contact the overpaying party.
The client has sought and is following legal advice in respect of the overpayments.