Obligations to report money laundering and other suspicious transactions
Obligations to report money laundering and other suspicious transactions

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Obligations to report money laundering and other suspicious transactions
  • Reporting money laundering under the Proceeds of Crime Act 2002 (POCA 2002)
  • Reporting suspicious transactions

Reporting money laundering under the Proceeds of Crime Act 2002 (POCA 2002)

The Money Laundering Regulations

Businesses regulated by the Money Laundering Regulations 2007, SI 2007/2157 (MLRs) must take steps to identify any activity they suspect to be linked to money laundering or terrorist financing. Money laundering is the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin in order that they can be retained permanently or recycled into further criminal enterprises. All businesses that are covered by the regulations have to put in place suitable anti-money laundering controls. For more information on the MLRs, see Practice Note: The anti-money laundering regime.

The UK anti-money laundering regime, as it applies to regulated entities, is governed mainly by the MLRs and by requirements found in the Senior Management Arrangements, Systems and Controls Sourcebook (SYSC) within the Financial Conduct Authority (FCA) Handbook. HM Treasury is responsible for the MLRs and for appointing supervisors to review and implement their provisions.

Offences under the POCA 2002

A number of criminal money laundering offences are created by the Proceeds of Crime Act 2002. These are:

  1. Principal offences which apply to everyone and carry up to 14 years imprisonment:

    1. the concealing offence (POCA 2002, s 327)—concealing, disguising, converting, transferring criminal property or removing it