Money laundering—key information for businesses


Published by a UUÂãÁÄÖ±²¥ Risk & Compliance expert
Practice notes

Money laundering—key information for businesses


Published by a UUÂãÁÄÖ±²¥ Risk & Compliance expert

Practice notes
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This Practice Note discusses what money laundering is and the law governing this area.

The Proceeds of Crime Act 2002 (POCA 2002), the Terrorism Act 2000 (TA 2000) and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, have a profound effect on UK businesses. Failure to comply carries heavy criminal, administrative and, for some, professional penalties.

Definitions of money laundering

Money laundering is the process through which proceeds of crime, and their true origin and ownership, are changed so they appear legitimate. However, the statutory definitions of money laundering are far wider than this.

Under POCA 2002 money laundering is defined as:

  1. •

    concealing, disguising, converting, transferring or removing criminal property out of the jurisdiction

  2. •

    entering into or becoming concerned in an arrangement that facilitates the acquisition, retention, use or control of criminal property

  3. •

    acquiring, using or possessing criminal property

These are known as the principal offences and they also include conspiracy or attempt to commit such an offence. Money

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Money laundering definition
What does Money laundering mean?

money laundering or the use or process of taking the proceeds of criminal activities and making them appear legal is an activity which bankers are required to prevent and report under certain regulations.

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