CAS3701 ASSESSMENT 15
This is a guidance on how to answer Assessment 15.
Before proceeding, it is important to note that plagiarism is a serious offence, and users must
not copy this response in its enErety. Instead, this response should only be used as a guide,
and users should incorporate their own style of response in line with their school guide.
Furthermore, users should write their own findings and not replicate the provided text.
To ensure that all requirements are met, it is recommended that users employ a rubric to
check if all expectaEons are saEsfied.
1. **Business and Professional Ethical Dilemmas**
A. **Viola:on of Due Diligence:** The Financial Intelligence Centre Act (FIC Act) obliges
PropertyInvest Ltd to conduct due diligence to determine the source of a property buyer’s
funding. This is to prevent involvement in illicit ac:vi:es such as money laundering. The CEO,
Mr. Nooks, knowingly bypassed this process, viola:ng both the FIC Act and the company's
policy.
B. **Conflict of Interest:** Mr. Nooks' decision to override the due diligence test may be
influenced by personal interests (possibly financial gains) rather than the best interests of
the company. This cons:tutes a conflict of interest and violates the principles of fairness and
honesty in business prac:ces.
C. **Risk to Reputa:on and Financial Stability:** If Mr. Caesar is indeed involved in money
laundering, the company's associa:on with him could damage its reputa:on, share price,
and financial stability. Ignoring this risk for short-term profit undermines the principles of
prudence and professionalism.
2. **Comparing Decisions and Their Consequences**
A. **Complete the Due Diligence Test:**
- **Legal and Ethical Requirements:** Comple:ng the due diligence test is a requirement
under the FIC Act, and it aligns with the company’s policy. By doing so, you would be
complying with legal and ethical standards.
- **Consequences:** There may be fric:on with the CEO, but it would protect the
company from poten:al legal consequences and reputa:onal damage. If Mr. Caesar's funds
are found to be illicit, the transac:on can be halted, safeguarding the company. However, if
the source of funds is legi:mate, the transac:on can proceed without poten:al legal or
reputa:onal risks.
B. **Leave the MaXer as Is:**
- **Legal and Ethical Requirements:** Ignoring the issue would mean a viola:on of the
FIC Act and the company's policy, compromising both legal and ethical standards.
- **Consequences:** In the short term, the company may profit from the transac:on.
However, if Mr. Caesar's funds are illicit, the company could face serious legal repercussions,
This is a guidance on how to answer Assessment 15.
Before proceeding, it is important to note that plagiarism is a serious offence, and users must
not copy this response in its enErety. Instead, this response should only be used as a guide,
and users should incorporate their own style of response in line with their school guide.
Furthermore, users should write their own findings and not replicate the provided text.
To ensure that all requirements are met, it is recommended that users employ a rubric to
check if all expectaEons are saEsfied.
1. **Business and Professional Ethical Dilemmas**
A. **Viola:on of Due Diligence:** The Financial Intelligence Centre Act (FIC Act) obliges
PropertyInvest Ltd to conduct due diligence to determine the source of a property buyer’s
funding. This is to prevent involvement in illicit ac:vi:es such as money laundering. The CEO,
Mr. Nooks, knowingly bypassed this process, viola:ng both the FIC Act and the company's
policy.
B. **Conflict of Interest:** Mr. Nooks' decision to override the due diligence test may be
influenced by personal interests (possibly financial gains) rather than the best interests of
the company. This cons:tutes a conflict of interest and violates the principles of fairness and
honesty in business prac:ces.
C. **Risk to Reputa:on and Financial Stability:** If Mr. Caesar is indeed involved in money
laundering, the company's associa:on with him could damage its reputa:on, share price,
and financial stability. Ignoring this risk for short-term profit undermines the principles of
prudence and professionalism.
2. **Comparing Decisions and Their Consequences**
A. **Complete the Due Diligence Test:**
- **Legal and Ethical Requirements:** Comple:ng the due diligence test is a requirement
under the FIC Act, and it aligns with the company’s policy. By doing so, you would be
complying with legal and ethical standards.
- **Consequences:** There may be fric:on with the CEO, but it would protect the
company from poten:al legal consequences and reputa:onal damage. If Mr. Caesar's funds
are found to be illicit, the transac:on can be halted, safeguarding the company. However, if
the source of funds is legi:mate, the transac:on can proceed without poten:al legal or
reputa:onal risks.
B. **Leave the MaXer as Is:**
- **Legal and Ethical Requirements:** Ignoring the issue would mean a viola:on of the
FIC Act and the company's policy, compromising both legal and ethical standards.
- **Consequences:** In the short term, the company may profit from the transac:on.
However, if Mr. Caesar's funds are illicit, the company could face serious legal repercussions,
