Fraud – Money Laundering


The three principal money laundering offences (ss.327-329) replace the previous drug and non-drug crime money laundering offences with single offences that do not require proof of particular source of the funds

“regulated sector” Schedule 9  to the 2002 Act (as substituted by the Proceeds of Crime Act 2002 (Business in the Regulated Sector and Supervisory Authorities) Order 2007 (S.I. 2007 No. 3287)) provides for the meaning of a business in the regulated sector  [Read Article] [Read Article]

 The offences of failing to disclose possible money laundering (ss.330-332), relate ONLY to those working in the business sector.

Section 330 concerns a person who receives information in the course of a business in the regulated sector

, as defined in Schedule 9 (post, §26-16),

and who thereby knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in money laundering, and who fails to disclose to a nominated officer, or a person authorised …. , the information on which his knowledge or suspicion is based.

Section 331 penalises a failure by a nominated officer working in the regulated sector, who receives a report under section 330, to disclose that report as soon as practicable where he has the requisite mens rea

Section 332 relates to nominated officers both inside and outside the regulated sector who receive reports under section 337 or 338 (a disclosure in relation to one of the principal money laundering offences or a voluntary disclosure).

Section 333A creates an offence – “TIPPING OFF” – covering the regulated sector  of disclosing to the customer concerned, or to other third persons, the fact that information about known or suspected money laundering has been disclosed or that a money laundering investigation is being, or may be, carried out

Section 342 creates an offence of prejudicing a confiscation, civil recovery, detained cash or money laundering investigation where the person knows or suspects that there is or is likely to be an investigation.

 Mental Element

An offence is committed where a person has reasonable grounds for knowing or suspecting that another person is engaged in money laundering (as defined in s.340(11)), even if he did not actually have any such knowledge or suspicion. The basis for reporting suspicions that money laundering has occurred, or that funds derive from criminal conduct, is the criminal law of the United Kingdom. There is no duty to consider the law of any other country, but there is a duty to have regard to United Kingdom criminal law regardless of where the conduct in question occurred (see s.340(2) and (11)).

Sections 327-329  require proof that the conduct concerned “criminal property” ie if it constitutes a person’s benefit from criminal conduct or it represents such a benefit (in whole or in part and whether directly or indirectly), and the alleged offender knows or suspects that it constitutes such a benefit.

“Suspects” is also sufficient to prove the offences in sections 332, 333, 336(5) and 342

Sections 330  and 331 (offences that may only be committed by a person working in the regulated sector) introduce an objective or “negligence” test in that a person may be convicted if there were reasonable grounds for knowing or suspecting that another person was engaged in money laundering.

The sentences are very substantial, and may be influenced by the sort of crime thought top have produced the money

Example of sentences for laundering cash: 11 and 6 years imprisonment [Read Article]