Explanation:
According to the European Union's 4th AML Directive (Directive (EU) 2015/849), money laundering is legally defined as knowingly converting or transferring property derived from criminal activity for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such an activity to evade the legal consequences of that person's action. Option B describes terrorist financing. Option C is a general description of internal fraud or misconduct. Option D describes the integration phase of money laundering and tax evasion, but Option A is the precise legal definition given in the directive.
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Q.69 Different countries may have different laws against money laundering and terrorism financing. On 20 May 2015, the European Parliament and Council issued a directive to prevent the use of the financial system for money laundering or terrorist financing. According to the European Union, which of the following activities are considered money laundering?
A
Knowingly converting or transferring property derived from criminal activity in order to disguise the illicit origin of the property.
B
The provision or collection of funds to be used, partly or in full, to facilitate any offense considered by the authorities as a terrorism act
C
Any intentional violation of the law or of internal policies perpetrated by the firm's employees
D
Getting the money out to use while evading taxes and law enforcement through activities such as fake payments to employees, fake loans, or dividends to accomplices
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