P1705845x

FORENSIC ACCOUNTING

ASSESSMENT 1
INDIVIDUAL CLASSWORK

PROFESSOR DR. PASCHAL OHALEHI

Word Count 1,000
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1.
[ i.] You are required to identify the relevant law, and offences that can be committed.

Proceeds of Criminal Act, 2002 (POCA) & Money Laundering Regulation, 2017
(MLR) is the only Bunch of offences in Money Laundering which is applied in whole United
Kingdome and the Offences are committed when they conceals, converts, transfer, acquire,
uses Criminal property and remove it from UK. (EU, 2017)
There are many relevant offences which are committed in Criminal Activity of Money
Laundering.

 Tax Evasion – When people uses abroad (foreign) accounts to hide the money and
declare a small amount of money to the Country Government to avoid paying full
amount of the Tax to government & it saves Tax.

 Theft – Theft is always Money Laundering when it is completed, As thief then transfer
the things in the country’s economy again without letting the people noticing, and the
stolen goods never can be traced down.

 Fraud – Fraud Cases are also Money Laundering as fraud makes money that is to be
converted in legal money to be used by Criminals.

 Terrorist Financing – Terrorist are usually financed through Money Laundering

because using clean legal money & Assets good for doing illegal activities.

 Bribery – It is a very Sevier problem because it effects in developing of the economy

& Political stability, Bribery is when a person give money to government officials for
doing their illegal, criminal & Fraud work. Such official persons are called Politically
Exposed Person (PEP) all corrupt PEP do take bribery and has a good chance of
increasing their assets by Money Laundering.
(Wentworth, 2018)

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[ ii.] Discuss the safe guards to be adopted by professionals to avoid becoming involved
in money laundering activity.

Money Laundering is a White-collar Crime and NCA (National Crime Agency) is a

Law agency working among businesses by giving information & protecting themselves from
the criminal misuse. If we find that the Person or Business is involved in Money Laundering
then we should inform NCA immediately by submitting Suspicious Activity Report (SAR),
and they will help you out. Converting Dirty Money into Good Money is a criminal offence
and it could let you 14 years of imprisonment or a large amount of Fine. (Edmonds, 2018)
A person or the business have to take care of certain things to protect themselves for
not being caught for Money Laundering as they have to first identify ways to safe guard
criminal activity by knowing about the Money Laundering Schemes, clarifying the questions,
do due Diligence (doing the persistent work carefully), Making a Brief Money Laundering
Policy & Maintain your Privacy. (Rampton, 2017)

2.
[i.] Could Mikel successfully pursue negligence claim? You must refer to the elements of
a negligence claim whilst discussing your answers.

Negligence is when the omission of the duty is held by the whole authorised department
or the carelessness shown in regulating the conduct of human affairs under the circumstances
of law by failing to take action as authorised person or company. (Mandel, 1967)
Yes, Mikel can pursue the negligence claim. As the authority fails to provide safety
measures for the players at the field, as there was breach of said duty. As Mikel was a kid any
serious or consequential damage could have been happen to him at the time of playing. As this
is the duty of sport centre to take care of the people visiting there and they failed to take care
of them. (Consultation, 2007)
There are four elements of negligence that Mikel has to prove in the court for the claim:
 Duty and care – Court will see whether the legal duty is required to Prosecutor or not
and the defendant should take care of the Prosecutor and fulfil everything he claims.
 Breach of said duty - Court will look at the cause of injury or failure in completing the
duty and in the case of Mikel the cause of breach was water at the football ground.

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 Consequential Damage – in this element the court should compensate the plaintiff
usually in the form of money for covering all his medical expenses. (John, n.d.)

The Mikel can ask the sports club to fulfilling all his hospital bills and medical expenses
caused by his back injury, or can also claim for high amount from the sports club. They
also have to compensate for the work he lost because of his fractured leg, as his injuries
will take time to recover completely. It is the duty of the authorised department to provide
care and safe environment to the students visiting their sports club, but in this case the water
in the football ground is a breach of that duty. This carelessness ascertains the breach and
alternative dispute resolution measures the misfortunes that involve the mediation and
peace-making.

(ii.) Discuss the role of a forensic accountant in the above scenario?

Forensic Accountant are hired by Claimants, Defendants & Solicitors to settle their
injury Claims, if we consider any claim in contradiction of An accountant it is worth bearing
in mind that all parts of the claims will need an expert witness, As Forensic Accountant are
Experienced / Skilled, And are very specific in area of Accountancy because they look into
monetary analysis with relation of arguments from preliminary to litigation phases. As the case
is of Negligence the forensic Accountant has the duty to see that if any incident would have
taken place due to Negligence of Owner. (Hampson, 2011)
Forensic Accountant will provide the Wise /Sensible calculated compensation
Quotation (Valuation) for the reimbursement to Mikel. For his Tibia & Fibula Fractured Leg,
As hospital expenses which includes Plates inserted for supporting the fracture and the time he
lost until he is perfectly fine. Forensic Accountant use “The Law of Damage” for the
assessment & Quantification of damage, Accountant have to sensibly study the components
for giving a fair estimate to claim:-
 Nature of Damage
 Extent of Damage
 Consequences of Damage
 Relevant Report
 Precedents
(Associates, 2017)

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Works Cited

 Edmonds, T., 2018. Money Laundering Law, London: House of Commons Library.

 John, T., Forensic Accounting. s.l.:Pretice Hall.

 EU, M. L. i., 2017. Methods and Stages of Money Laundering. [Online] 
Available
at:
https://people.exeter.ac.uk/watupman/undergrad/ron/methods%20and%20stages.htm

[Accessed 26 1 2019].

 Wentworth, I., 2018. 5 Basic Money Laundering Offences, s.l.: Delta Net International.

 Rampton, J., 2017. Ways to Protect Your Business from Money Laundering. [Online]

Available at: https://www.trulioo.com/blog/protect-business-money-
laundering/
[Accessed 2019].

 Mandel, B., 1967. Negligent Design of Sports Facilities, Cleveland: Cleveland State
Law Review.

 Consultation, 2007. The Law on Damages, Britain: Department for Constitutional

Affairs.

 Hampson, R., 2011. Forensic Accounting, s.l.: AAT.

 Associates, N. D., 2017. Law of Damages in India. Worldwide.

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