Introduction Into Money Laundering

Question 1

Objective

Answer 1

• what is money laundering?
• what are the potential offences And penalties under anti-money laundering legislation
• how anti-money laundering legislation affects reporting suspicions of money laundering and confidentiality

Question 2

What is money laundering?

Answer 2

• money laundering occurs every time a transaction takes place that involves benefit from crime.
• includes turning money from illegitimate economy into money from legitimate economy
• e.g money dishonestly retained after omission has been discovered on a tax return is criminal property ( money laundering)

Question 3

Legislation

Answer 3

• money laundering is criminalised by the proceeds of crime act 2002 (POCA)
• details of anti-money laundering requirements are contained in the money laundering, terrorist financing and transfer of funds regulation 2017 (MLR)
• also includes terrorist financing, including possessing funds to be used for terrorism. As well as handling the proceeds of terrorism. Terrorist financing is regulated by the terrorism act 2000 (TA)

Question 4

3-stages of money laundering

Answer 4

• placement: criminal proceeds deposited into financial system,
• layering: the money is moved and transferred in and attempt to hide the original source
• integration: the money is extracted via legitimate looking business transaction

Money laundering is a criminal offence regardless how small the amount. No de minimis exception