Proceeds of Crime Act 2002 offences.
There are three primary offences under the Proceeds of Crime Act 2002, which are:
Concealing is where someone knows about or suspects money laundering but aims to cover up its existence. Someone commits this offence if they do any of the following:
- Disguise criminal property. For example, by placing funds sourced from illegal activity into a gambling account and then removing the funds at a later date.
- Conceal criminal property. For example, by placing funds sourced from illegal activity into a bank account.
- Transfer criminal property. For example, transferring the funds sourced from illegal activity between various bank accounts.
- Convert criminal property. For example, by purchasing a property with funds sourced through illegal activity.
- Remove criminal property from the UK. For example, by taking the illegal funds overseas.
This form of offence usually takes place at the placement and layering stage of money laundering. These stages involve integrating illegally sourced funds in a legitimate financial system, such as a bank, and covering up the source of the funds by buying and selling assets and transferring funds between multiple bank accounts.
This form of offence involves people who launder money on behalf of others. This offence typically occurs at the layering and integration stage of money laundering. These stages include moving the ‘dirty money’ sourced from illegal activities with legitimate funds to hide the true origin and returning the ‘cleaned’ money to the launderer from a seemingly legitimate source.
Usually, this form of an offence under the Proceeds of Crime Act 2002 will catch people in financial or credit institutions, such as accountants, who help a criminal launder their money.
Acquisition, use and possession
This form of offence is where someone looks to benefit from money laundering by:
- Aquiring criminal property;
- Using criminal property; or
- Possessing criminal property.