Croydon Crown Court has ordered Tommy Adams to repay £1,243,270.75m by 26 May 2020 for his part in a money laundering operation which he ran with his associates. If he fails to repay the amount in full, he will face seven years in prison.

The National Crime Agency (NCA) has announced that Shafiq Ahmed, a money transfer business owner, responsible for a £5m money laundering scheme has been sentenced to a year in prison at Kingston Crown Court after the NCA discovered he breached his Serious Crime Prevention Order (SCPO). Ahmed was originally sentenced in June 2013 at Blackfriars Crown Court to eight years in prison for laundering millions of pounds, he was later released on licence in July 2017 having served half his sentence. At the same court, on 23 October 2014, Ahmed was made subject to a confiscation order and ordered to give over £829,427 in profits obtained through his criminal activities and a SCPO was made. On 5 August 2020, NCA officers arrested Ahmed and conducted a search of his home, seizing a mobile phone and SIM cards plus documentation relating to multiple undeclared accounts, companies, and properties as well as cash and credit and debit cards. Following a second NCA investigation, Ahmed has been sent back to prison.

Money laundering or the use or process of taking the proceeds of criminal activities and making them appear legal is an activity which bankers are required to prevent and report under certain regulations.

Anti-money laundering regime The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLR 2017) form part of the UK's overall anti-money laundering and counter-terrorist financing regime. They came into force on 26 June 2017, replacing the Money Laundering Regulations 2007, SI 2007/2157. MLR 2017 originally implemented Archived Directive (EU) 2015/849 (commonly known as the Fourth Money Laundering Directive or MLD4). They were subsequently amended to implement the trust transparency requirements of Archived Directive (EU) 2018/843 (commonly known as the Fifth Money Laundering Directive or MLD5). While the UK laws implementing directives (like MLR 2017) form part of UK domestic law, the directives themselves (ie MLD 4 and MLD 5) do not. MLR 2017 impose administrative requirements which operate alongside the criminal anti-money laundering and counter-terrorist financing regime contained in the Proceeds of Crime Act 2002 and the Terrorism Act 2000. How does MLR 2017 apply in respect of pension schemes? The following requirements introduced by MLR 2017 may be relevant in respect of trust-based pension schemes:

Legal framework 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. The Financial Action Task Force has published a report on the prevalence and workings of environmental crime. Money laundering attracts substantial criminal penalties and is criminalised by the three dedicated money laundering offences set in sections 327 to 329 of the Proceeds of Crime Act 2002 (POCA 2002). For more information, see: Money laundering under the Proceeds of Crime Act 2002—overview and Practice Note: Money laundering offences under the Proceeds of Crime Act 2002. The criminalisation of money laundering is underpinned by an anti-money laundering (AML) regime, ie provisions in POCA 2002 dealing with the disclosure of suspicious activity and a regulatory regime designed to prevent money laundering which is provided for by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692. The

Law360, London: The overall value of fraud cases involving money laundering heard at crown courts has risen nearly fourfold in the first half of 2024, according to a report issued by KPMG on 28 August 2024.

This Practice Note is intended for commercial organisations that are subject to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. It provides guidance on the requirement to appoint a board-level (or equivalent) or senior management-level person as the officer responsible for the organisation’s compliance with the MLR 2017. This position is commonly known as the money laundering compliance officer (MLCO) or board-level person. This Practice Note reflects the requirements of the MLR 2017 and includes suggested good practice. However, you will need to consider whether your organisation’s anti-money laundering (AML) supervisory authority imposes any additional requirements or restrictions. Law firms regulated by the SRA should refer to Practice Note: Money laundering compliance officer—law firms. Not all organisations are required to appoint an MLCO. Sole traders are not required to do so and other organisations are only required to appoint an MLCO where: • they are caught by the MLR 2017, and • it is appropriate to appoint an individual having regard to the

1 MLCO details Name of organisation [insert name] Name of MLCO [insert name] Status of MLCO [insert description that demonstrates board-level or equivalent status, eg director and member of senior leadership team] Details of any other roles held within the organisation [insert details of any other roles held, eg COO] Date appointed [insert date] 2 Role summary To be the board-level (or equivalent) officer responsible for the organisation’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 and to: 2.1 [be the main point of contact with the [insert name of relevant anti-money laundering (AML) supervisor] on any matter relating to anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing;] 2.2 [take a leading role in dealing with the [insert name of relevant AML supervisor] on AML, CTF and counter-proliferation financing;] 2.3 take a leading role on AML, CTF and counter-proliferation financing issues within the senior management of the organisation; 2.4 support the work of the organisation’s nominated officer; and 2.5 ensure the organisation’s AML, CTF and counter-proliferation financing efforts have appropriate oversight and engagement at the highest level.

1 MLCO details Name of firm [Insert name] Name of MLCO [Insert name] Status of MLCO [Insert description that demonstrates board-level or equivalent status, eg Member of managing board] Details of any other roles held within the organisation [Insert details of any other roles held, eg Head of Real Estate] Date appointed [Insert date] 2 Role summary To be the board-level (or equivalent) officer responsible for the firm’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, and to: 2.1 be the main point of contact with the Solicitors Regulation Authority (SRA) on any matter relating to anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing; 2.2 take a leading role in dealing with the SRA on AML, CTF and counter-proliferation financing; 2.3 take a leading role on AML, CTF and counter-proliferation financing issues within the senior management of the firm; 2.4 support the work of the firm’s nominated officer; and 2.5 ensure the firm’s AML, CTF and counter-proliferation financing efforts have appropriate oversight and engagement at the highest level. 3 Job description/role profile The MLCO [is OR has appointed [insert, eg the nominated officer]

This Practice Note is intended for law firms that are subject to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. It provides guidance on the requirement to appoint a board-level (or equivalent) or senior management-level person as the officer responsible for the firm’s compliance with the MLR 2017. This position is commonly known as the money laundering compliance officer (MLCO) or board-level person. Not all firms are required to appoint an MLCO. Sole practitioners are not required to do so and other firms are only required to appoint an MLCO where: • they are caught by the MLR 2017, and • it is appropriate to appoint an individual having regard to the size and nature of the business Where the firm does appoint an MLCO, see Precedents: MLCO and nominated officer—combined job description and role profile—law firms or Money laundering compliance officer—MLCO—job description and role profile—law firms. This Practice Note reflects the Legal Sector Affinity Group (LSAG) AML guidance. This

The Crown Prosecution Service (CPS) has announced the prosecution and sentencing of nine money launderers after they were found guilty of money laundering offences, namely transporting illegally obtained cash to Dubai. The group consisted of Jonathan Johnson, Amy Harrison, Beatrice Auty, Jo-Emma Larvin, Muhammed Ilyas and Nicola Esson, and the mastermind behind the money laundering scheme was a Dubai national, Abdulla Alfalasi. The CPS found that Johnson, Harrison, Auty and Larvin went on several journeys to Dubai with suitcases packed with up to £500,000 in cash and were paid £3,000 for each trip where they transported cash. Alfalasi has been sentenced to over nine years' imprisonment alongside Tara Hanlon and Zdenek Kamaryt, who were handed sentences for 34 months' and 31 months' imprisonment respectively.

Money laundering offences—an introduction Money laundering is the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin, so that they can be retained permanently or recycled into further criminal enterprises. Money laundering is undertaken following a predicate, acquisitive offence, when the proceeds of the crime are laundered by either the offender themselves or someone on their behalf. Substantive money laundering offences are criminalised under Proceeds of Crime Act 2002 (POCA 2002) and are considered in more detail below. Offences can also be committed by those who fail to detect, deter, prevent or report substantive money laundering offences under the anti-money laundering regime. Such offences are provided for under POCA 2002 or under secondary legislation. For more information, see Practice Note: Money laundering offences—failure to disclose offences and Failure to disclose money laundering offences—flowchart. An organisation may be held criminally liable where a senior manager commits the relevant offence while acting within the actual or apparent scope of their authority.