Money Laundering

HMRC guidance on the Money Laundering Regulations describes the concept in plain terms: “Money laundering means exchanging money or assets that were obtained criminally for money or other assets that are ‘clean’. The clean money or assets do not have an obvious link with any criminal activity.” Businesses in specified sectors — including accountants, financial service businesses, estate agents and solicitors — must be monitored by a supervisory authority under the regulations, registering with HMRC if not already supervised by a body such as the FCA or the Law Society.

The principal money laundering offences are set out in Part 7 of the Proceeds of Crime Act 2002. Section 327 makes it an offence to conceal, disguise, convert, transfer or remove criminal property from the UK, and the Act defines the concealing/disguising limb broadly: “Concealing or disguising criminal property includes concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it.” Related offences in the Act cover arranging facilitation of another's acquisition, retention, use or control of criminal property, and acquiring, using or possessing criminal property.