Part A7 Money laundering and tax avoidance schemes
Contents of Part A7
A7.1 Money laundering
A7.2 DOTAS and money laundering
A7.3 Promoters of tax avoidance schemes and serial tax avoiders
A7.4 Tax avoidance
Division A7.1 Money laundering
Barrister, 2 Bedford Row
For updates affecting this Division please see Part A0 Updates
A7.101 Introduction to money laundering
For the latest New Developments, see ND.1295, ND.2048, ND.2064.
Since Al Capone was convicted of tax evasion in 1931, prosecutors and police forces have realised the power in combating crime through tracking the proceeds. Money laundering aims to thwart these attempts by law enforcement. It enables criminals to give illegal or 'dirty' money the appearance of deriving from a legitimate or 'clean' source; and there are a number of methods in which this can be achieved. Criminals can convert proceeds into cash and spend it; which may work for small amounts of money but is impractical for larger sums. The more sophisticated criminals use techniques such as layering, where the funds are moved in a relatively short time between a number of entities so that the money ends up both appearing legitimate and having come from a legitimate source, with the initial injection of the funds into the chain of legitimacy being hard to trace. Whatever method is used to legitimise funds they all have one thing in common. They must come into, and exit from, a legitimate business at some stage.
Proceeds of Crime Act 2002
The UK has had money laundering
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial