MONEY LAUNDERING

What is money laundering? Money laundering is the process by which the proceeds of crime or the ownership of criminal proceeds are changed so that the proceeds appear to have come from a legitimate source. 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 possessing criminal property.

All professionals that operate in the regulated sector are obliged to disclose information about a transaction that they know, suspect or should reasonably have known or suspected, involves money laundering. A failure to comply with this is a criminal offence and is punishable to a maximum of five years imprisonment. 

The most common defence to this allegation is that the information came to a professional legal adviser and in privileged circumstances. This is a complex area of law that requires specialist legal advice.

Tipping off occurs if the alleged offender discloses to a third party that Suspicious Activity Report has been made by any person to the police, HMRC, the National Crime Agency or a nominated officer, if that disclosure may prejudice any investigation that may be carried out as a result of the Suspicious Activity Report.