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 law firms).

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. See Practice Note: Proceeds of Crime Act 2002—key information for law firms.

Under the Terrorism Act 2000 (TA 2000) it is an offence to enter into or become concerned in an arrangement that facilitates the retention or control by or on behalf of another person of terrorist property:

•
by concealment
•
by removal from the jurisdiction
•
by transfer to nominees, or
•
in any other way

For more information, see Practice Note: Counter-terrorist financing—key information for law firms.

Proliferation

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Practice Compliance News

OFSI extends General Licence for Lukoil Bulgaria entities’ business operations

The Office of Financial Sanctions Implementation (OFSI) has extended General Licence INT/2025/7895596, which permits the continuation of business operations with Lukoil Bulgaria entities. The licence will now expire on 13 August 2026. The licence was originally issued on 14 November 2025 under regulation 64 of the Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019/855, and was subsequently amended on 20 November 2025 to extend its scope to aviation and bunker subsidiaries. OFSI has also updated FAQ 173 of its UK Financial Sanctions FAQs to reflect the extension.

OFSI updates financial sanctions enforcement guidance with new penalty schemes

The Office of Financial Sanctions Implementation (OFSI) has updated its financial sanctions enforcement and monetary penalties guidance, reflecting outcomes from the government's 2025 consultation on improving civil enforcement processes. The updated guidance introduces an Early Account Scheme enabling subjects to receive up to 20% monetary penalty reductions for providing comprehensive factual accounts, a Settlement Scheme offering 20% discounts for early case resolution, and fixed monetary penalties of £5,000 and £10,000 for information, reporting and licensing offences. OFSI has also enhanced voluntary disclosure and cooperation discounts to up to 30%, implemented a four-level case seriousness classification system, and introduced financial hardship considerations for penalty reductions in exceptional circumstances.

Law firm and its consultant fined £80k for misusing client account

Law360, London: A law firm and its consultant have been imposed with a fine of almost £80,000 between them after the Solicitors Regulation Authority (SRA) found that the consultant had improperly used a client account to move money for a Russian client.

Practice Compliance weekly highlights—5 February 2026

This week's edition of Practice Compliance weekly highlights includes sanctions against Iranian authorities for human rights violations, a warning notice from the SRA on 'no win, no fee' arrangements in high-volume consumer claims and the Data (Use and Access) Act 2025 (DUAA 2025) (Commencement No 6 and Transitional and Saving Provisions) Regulations 2026, SI 2026/82, which bring the majority of the DUAA 2025’s data protection reforms into force from 5 February 2026.

View Practice Compliance by content type :

News