Law-and Financial Crimes

Law-and Financial Crimes

Contents
TASK 1............................................................................................................................................1
Explaining civil offence according to FSMA 2000 and identifying sources of law on insider
dealing..........................................................................................................................................1
Comparing statutory frameworks and EC context on dealing with insider dealing and market
abuse............................................................................................................................................1
Analysing the general offences of financial crimes under FSMA 2000, Fraud Act 2006 and
Theft Act 1968.............................................................................................................................2
Justifying ways in which the market abuse regulation sand powers of regulators act decisively
against insider dealing and related financial frauds.....................................................................2
TASK 2............................................................................................................................................3
2.1. Explain the purpose of money laundering regulations.........................................................3
2.2. Evaluate the international dimensions of money laundering regulations.............................4
2.3. Outline the background of proceeds of Crime Act 2002 and explain offences under its
provisions.....................................................................................................................................4
2.4. Assess the consequences of money laundering on the society.............................................4
TASK 3............................................................................................................................................5
3.1. Explaining historic and economic context of general provisions of law on money
laundering, terrorist financing, corruption...................................................................................5
3.2. Identifying the EC Market Abuse Directive to control market manipulation and abusive
practices.......................................................................................................................................7
REFERENCES................................................................................................................................9

TASK 1
1.1 Explaining civil offence according to FSMA 2000 and identifying sources of law on insider
dealing
According to Section 118 of Financial Services and Markets Act 2000, a civil offence is an
act conducted by an individual or organisation due to which the liability to pay Financial services
authority arises. Civil offence is different from criminal offence and the subject matter of guilt is
investigated by FSA.
Besides FSMA 2000, there are few other sources of law for insider trading. These sources
of laws include Companies Securities (Insider Dealing) Act 1985, Criminal Justice Act 1993’s
Section 52, 53 and 54, Part V of Criminal Justice Act 1993 (Sources of law for insider trading.
2020).
1.2 Comparing statutory frameworks and EC context on dealing with insider dealing and market
abuse
Statutory frameworks EC context
Meaning This framework is provided by
Financial Services and Markets Act
2000 in which new regulations to limit
insider trading and market abuse are
developed in the region of United
Kingdom.
These are the regulations given by
European Union Directive to regulate
obligations and disclosures of market
abuse and insider trading.
Dealing with
Insider
trading
According to statutory framework, the
insider trading is dealt as criminal
liability and both penalty and
imprisonment is charged to the guilty
(Ojo, 2016).
EC context deals with insider trading
as considering it as an offence under
MAR (Singh, 2016).
Dealing with
Market abuse
The statutory framework considers the
misuse of information, misleading
impressions and distorting the market
as prohibition of regulations of market
abuse.
The EC context considers insider
dealings, unlawful disclosures and
market manipulation as prohibition of
regulations of market abuse (Market
abuse regulations. 2020).
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