Regulatory regime

Regulatory regime

Money laundering is the process through which proceeds of crime, and their true origin and ownership, are changed so they appear legitimate (see Practice Note: Money laundering—key information for businesses).

The anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing regime is found in 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, all of which have a profound effect on UK businesses. Failure to comply with requirements laid out in these pieces of legislation carries heavy criminal, administrative and professional penalties.

Definitions

Under the Proceeds of Crime Act 2002 (POCA 2002) money laundering is defined as:

•
concealing, disguising, converting, transferring or removing criminal property out of the jurisdiction
•
entering into or becoming concerned in an arrangement that facilitates the acquisition, retention, use or control of criminal property
•
acquiring, using or possessing criminal property

These are known as the principal offences and they also include conspiracy

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