ACA ICAEW Audit and Assurance Practice Exam 2025 - Free Audit and Assurance Practice Questions and Study Guide

The key responsibility of the Money Laundering Reporting Officer (MLRO) is to decide whether a report to the National Crime Agency (NCA) is necessary. The MLRO plays a critical role in ensuring that an organization complies with anti-money laundering regulations, which includes assessing any suspicions of money laundering or terrorist financing activity. When questionable transactions or behavior are identified, it is the MLRO's duty to evaluate the situation and determine if a suspicious activity report (SAR) should be filed with the NCA. This is crucial for maintaining the integrity of the financial system and for protecting the organization from potential legal ramifications related to money laundering activities.

In contrast, providing financial advice to clients, conducting audits, or training employees on financial literacy do not fall under the primary responsibilities of the MLRO. These tasks align more closely with roles related to financial advisory services, internal audit functions, or employee development, respectively, and are separate from the specific duties of monitoring and reporting suspicious financial activities.