This Practice Note discusses what money laundering is and the law governing this area. The Proceeds of Crime Act 2002 (POCA 2002), the Terrorism Act 2000 (TA 2000) and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, have a profound effect on UK businesses. Failure to comply carries heavy criminal, administrative and, for some, professional penalties. Definitions of money laundering Money laundering is the process through which proceeds of crime, and their true origin and ownership, are changed so they appear legitimate. However, the statutory definitions of money laundering are far wider than this. Under 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 and they also include conspiracy or attempt to commit such

This Practice Note discusses what money laundering is and the law governing this area. The Proceeds of Crime Act 2002 (POCA 2002), the Terrorism Act 2000 (TA 2000) and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, have a profound effect on legal professionals. Failure to comply carries heavy criminal, administrative and professional penalties. Definitions Money laundering is the process through which proceeds of crime, and their true origin and ownership, are changed so they appear legitimate. However, the statutory definitions of money laundering are far wider than this. Under 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 and they also include conspiracy or attempt to commit such an offence. Money laundering includes counselling,

The market for short-term fixed income instruments (typically with less than one year to maturity).

The Financial Conduct Authority (FCA) has published the findings from its multi-firm review of payment services and account providers’ use of the National Fraud Database (NFD) and money mule account detection tools to trace the proceeds of fraud across payment networks. The review sets out good practice and identifies a significant number of areas requiring improvement to effectively tackle mule activity. The FCA expects firms to establish proportionate anti-fraud systems and controls to manage the problem of money mules and the associated risks; where firms fail to do so the FCA warns it will use its ‘full regulatory tools, including enforcement action’.

'Money paid for a special purpose' refers to money paid into an account for a particular purpose which implies a fiduciary nature or trust, with a primary trust in favour of creditors and if the primary trust fails, in favour of a third party.

The reduced level of annual allowance for pension contributions permitted as from April 2015 triggered when pension rights are taken under an funds'>uncrystallised funds pension lump sum or flexi-access drawdown. The annual allowance from April 2015 in these circumstances is £10,000. Once triggered, the limit is for life.

The reduced level of annual allowance for pension contributions permitted as from April 2015 triggered when pension rights are taken under an funds'>uncrystallised funds pension lump sum (UFPLS) or flexi-access draw-down. The gross annual allowance from April 2015 was £10,000. From April 2017 and thereafter the annual gross allowance is £4,000. Once triggered, the limit is for life.

An arrangement is a money purchase arrangement if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are cash balance or other money purchase benefits. (HMRC)

Term defined by the Pension Schemes Act 1993, s 181 to refer to benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which fall within s 181B.

The question of the nature of money purchase benefits has attracted considerable attention over recent years. Given the onerous and growing financial burdens that defined benefit pension arrangements can impose on employers, the ability to identify clearly and unambiguously the nature of pension scheme benefits has become increasingly important. This is particularly so in the case of hybrid pension arrangements, which typically contain a variety of different types of benefits. For further information on types of pension arrangements, see Practice Note: Types of pension arrangements for employees. For most purposes, a benefit is a ‘money purchase benefit’ if it falls within the statutory definition of that term in the Pension Schemes Act 1993, s 181 (although, in some cases, an equivalent definition of the term is contained in another provision, eg in the Pensions Act 2008, s 99 in relation to auto-enrolment). Whether a benefit is money purchase in nature may affect the treatment of that benefit under pensions legislation in a number of circumstances eg in relation to: • scheme-specific

ARCHIVED. This Practice Note has been archived and is not maintained. This Practice Note looks at how pension schemes are affected by the revised statutory definition of money purchase benefits in the Pensions Schemes Act 1993 (PSA 1993), which was brought into force by the Pensions Act 2011, s 29 on 24 July 2014. For further information on the background to the revised statutory definition, see Practice Note: Money purchase benefits—the statutory definition. In this Practice Note, references to the trustees of a scheme also include the managers of a scheme. When did the revised definition of money purchase benefits take effect? The statutory definition of money purchase benefits was amended by provisions in the Pensions Act 2011, s 29 ('section 29'). Section 29 came into force on 24 July 2014 with retrospective effect to 1 January 1997. The Transitional Regulations Following consultation, the government published two sets of regulations ('the Transitional Regulations') that limit the impact of the retrospective effect of section 29 and avoid schemes having to revisit all past actions

A pension where your contributions are invested in, for example, the stock market.