Money laundering is the processing of criminal proceeds to disguise their illegal origin. It also includes money, however come by, which is used to fund terrorism.

Legislation defines the offences relating to money laundering as:

  • Concealing, disguising, converting or transferring criminal property or removing it from England and Wales;
  • Arranging, or becoming concerned in an arrangement, which the person who knows, or suspects, or facilitates (by whatever means), the acquisition, retention, use or control of criminal property by or on behalf of another person;
  • Acquiring, using or having possession of criminal property; and
  • Entering into or becoming concerned in an arrangement which facilitates the retention or control by or on behalf of another person of terrorist property.

There are further associated offences regarding due diligence and disclosures – these are:

  • Failure to apply customer due diligence;
  • Failure to apply on-going monitoring of business relationship and customer due diligence;
  • Failure to comply with timing on verification of clients and any beneficial owner;
  • Failure to apply enhanced customer due diligence and monitoring where required;
  • Failure to keep required records;
  • Continuing with a business relationship where unable to apply customer due diligence;
  • Making a disclosure to a person which is likely to prejudice a money laundering investigation (“tipping off”);
  • Failing to disclose; and
  • Prejudicing an investigation.