Money laundering offences
Money laundering offences

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Money laundering offences
  • The offences
  • The defences
  • The money laundering process

Charities are as susceptible to money laundering 'attacks' as any other organisation. It is essential that charity trustees protect their charity from these attacks and to recognise them they need to understand the offences that can be committed.

The offences

It is unlikely that a single charity will commit all of the potential offences but they should recognise their existence. The principal offences are:

  1. concealing, disguising, converting, transferring, or removing from the UK, criminal property

  2. entering into or becoming concerned in an arrangement which is known or is suspected of facilitating (by whatever means) the acquisition, retention, use or control of criminal property by or on behalf of another person

  3. acquiring, using or possessing criminal property

  4. where a person knows or suspects, or has reasonable grounds for knowing or suspecting, that another person is engaged in money laundering and no disclosure is made

  5. disclosing that an investigation into allegations that a money laundering offence has been committed is being contemplated or is being carried out; and the disclosure is likely to prejudice that investigation; and the information on which the disclosure is based came to the person in the course of a business in the regulated sector.

In respect of the last offence there is a reference to the regulated sector. Those organisations that are recognised as such are set out at Schedule 9, Part 1 of the Proceeds of Crime Act 2002 (POCA 2002). It is most unlikely (although not impossible) that a charity would be involved in or connected with any of the activities described but that cannot be assumed and trustees should, nonetheless, be aware

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