SQE1 sample questions

Question 73

A solicitor employed by a firm is acting for a client in the purchase of a new build residential property for £350,000. Contracts were exchanged a few months ago, the building works have finished and the completion date is set for next week.

Six weeks ago, a suspicious activity report (SAR) was correctly submitted online to the appropriate authority by the firm’s nominated officer as a result of information obtained by the solicitor that the client is concerned in money laundering. The SAR included a request for permission to proceed with completion of the purchase of the property.

A refusal of consent to complete the purchase was received five weeks ago. There has been no further communication from the appropriate authority or any application by them to the court since. No action has been taken against the client or his assets, and the client has not been informed that he is under investigation for money laundering.

Will the nominated officer commit an offence under the Proceeds of Crime Act 2002 if he gives consent to the solicitor to proceed with the purchase next week?

A. Yes, because a refusal to consent has been received.

B. Yes, because the refusal to consent has not been reversed within the following 31 days.

C. No, because it has been more than 31 days since the submission of the SAR.

D. No, because the client has not been informed that he is being investigated for money laundering and no action has been taken against the client or his assets.

E. No, because it has been more than 31 days since the refusal to consent was received.