National Reputation, Local Presence

 Money Laundering

  • Money laundering is rapidly becoming an important area for many clients and their advisers. Where the Prosecution claim that a defendant has financially gained from an involvement in an alleged crime, it is becoming increasingly common for Prosecutors to also bring a separate charge of money laundering under the Proceeds of Crime Act 2002.

  • Money laundering is also a topic of increasing concern to all solicitors, accountants, tax advisers and other professionals, due to the implications of the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003.

  • Many are now in the situation of having to make reports to the National Criminal Intelligence Service (NCIS.) where they know or suspect that their client is engaged in money laundering. They are then prevented from informing a client that this has taken place in fear of falling foul of the tipping off offence. Breaches of their obligations can lead to imprisonment even where there is no guilty knowledge or intent.

What is Money Laundering?

  • The principal money laundering offences involve the concealment, disguise, conversion, transfer or removal of criminal property, or becoming involved in the arrangement of money laundering, or acquiring, using or have possession of criminal property.

  • This is punishable up to a maximum of 14 years imprisonment. The size of the maximum sentence for money laundering is indicative of the importance that the Government puts on depriving criminals of criminal property.

  • Criminal property is defined in the Proceeds of Crime Act 2002 as anything, anywhere which represents a benefit from criminal conduct, where the alleged offender knows or suspects that this is the case. This includes any conduct which would constitute an offence if committed in the UK.

  • Secondary money laundering offences largely fall into two areas, firstly a failure to report a suspicious transaction to NCIS and secondly what is referred to as tipping off.

  • All professionals that operate in the regulated sector now are obliged to disclose information about a transaction that they know, suspect or ought reasonably have known or suspected, involves money laundering.

  • A failure to comply with this is now a criminal offence and is punishable up to a maximum of five years imprisonment. The primary defence to this offence is that the information came in privileged circumstances. A further defence is if the employee has not been provided with sufficient money laundering training, which is a regulatory offence for the employer.

  • The tipping off offence applies if the alleged offender knows or suspects that a money laundering disclosure has been made internally or externally, and informs a third party of this, when the provision of this information is likely to prejudice any investigation.

What can we do for you?  

  • If you are suspected of or are charged with a principal or secondary money laundering offence, then you will require specialist legal assistance which we can provide.

  • Legal Aid will normally be available for investigations and prosecutions of this nature

Money laundering is rapidly becoming an important area for many clients and their advisers. Where the Prosecution claim that a defendant has financially gained from an involvement in an alleged crime, it is becoming increasingly common for Prosecutors to also bring a separate charge of money laundering under the Proceeds of Crime Act 2002.