Question

Lyn is working for a bank services company that builds technologies to enable integration of ATM (Automatic Teller Machines) and mobile (phone) banking using apps. The system has been running for 5 years now. Yesterday the government banking watchdog approached you to ask some questions about 2 suspicious transactions on your system that look like criminal money laundering (where criminals put money through banks so that they look like legitimate transactions and then transfer the funds to other accounts, sometimes internationally). You’ve been told that each unreported transaction (of more than $5,000 deposit or transfer) will result in a fine of $15,000. You’ve now checked your system and in fact you have identified more than 50,000 similar potentially illegal transactions. Checking the system software you can see that a line of code where the check is made and a message sent to the banks fraud squad has been commented out.

Reference specific aspects of the ACS Code of Professional Conduct, a summary of which is provided below, in order to support your arguments.

1. The Primacy of the Public Interest

You will place the interests of the public above those of personal, business or sectional interests.

2. The Enhancement of Quality of Life

You will strive to enhance the quality of life of those affected by your work.

3. Honesty

You will be honest in your representation of skills, knowledge, services and products.

4. Competence

You will work competently and diligently for your stakeholders.

5. Professional Development

You will enhance your own professional development, and that of your staff.

6. Professionalism

You will enhance the integrity of the ACS and the respect of its members for each other.

a) List one of the actual and potential legal issues (i.e. one actual issue and one potential issue), for which Julie should seek legal advice.

Answer 1

ANSWER :

According to the reference of the ACS code of professional conduct, third and sixth points have been not conducted by the bank. Since money laundering took place i.e. criminals used your bank to make illegal transactions, the honesty of the bank to provide to provide services to people has been not conducted. If any transaction is made which is above $5000 then a message has to sent to the banks fraud squad to probe it. But this did not happen. The reason behind this is that in source code of the bank application the relevant part of the code which is responsible to trigger the message to the bank fraud squad has been commented out, hence the bank is no more honest in representing its skills, knowledge, services to the state. Hence this would be an actual issue.

When it comes to the point of potential issue. Then sixth point comes to the scene. Since that point obliges the bank to enhance the integrity of it services to the state or people. But by conducting the transactions of the criminals deliberately the integrity of the bank is damaged. Thus it could a potential issue and hence for these issues Julie should consult a legal advice.

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