The Proceeds of Crime Act 2002: Money Laundering in the United Kingdom
The Proceeds of Crime Act 2002 (POCA) as amended by the Serious Organised Crime and Police Act 2005 (SOCPA) sets out the primary offences of money laundering in the United Kingdom. These two Acts, supported by secondary legislation comprised of the Money Laundering Regulations 2007 and industry guidance make up the framework governing anti money laundering and counter terrorist financing in the United Kingdom.
The enactment of POCA in 2002 brought together the various pieces of anti-money laundering law in the UK in one overarching piece of legislation. It outlines the main money laundering offences in the UK, and contains measures for detecting and deterring the activity, in line with FATF recommendations (Krishnan, 2009: 12). It came into force on 24 February 2003 and replaced the Criminal Justice Act 1988 and the Drug Trafficking Act 1994. All money laundering offences begun on or after this date come under the Act. Sections 327 – 329 of POCA outline the primary offences of money laundering, sections 330 and 331 set out the reporting obligations of firms in the regulated sector, while section 333 outlines the offence of tipping off.
The term money laundering can be interpreted in different ways, however it is generally defined as the integration of criminal funds into the legitimate financial system with the aim of disguising their illegal origin (FATF, 2012b). It incentivises crime in that it allows criminals to realise the profits from their illegal activity, and allows them to use these to commit further unlawful acts. It undermines the integrity and stability of legitimate financial institutions, and it has detrimental impacts on both domestic and international economies (IMF, 2013: 1). As a result, it 's identification and prevention is in the public interest, and it is a focus of the financial community, governments and law-making bodies (Crown Prosecution Service, 2010: 2).
Money can be laundered in many different ways, from the simple, such as
The enactment of POCA in 2002 brought together the various pieces of anti-money laundering law in the UK in one overarching piece of legislation. It outlines the main money laundering offences in the UK, and contains measures for detecting and deterring the activity, in line with FATF recommendations (Krishnan, 2009: 12). It came into force on 24 February 2003 and replaced the Criminal Justice Act 1988 and the Drug Trafficking Act 1994. All money laundering offences begun on or after this date come under the Act. Sections 327 – 329 of POCA outline the primary offences of money laundering, sections 330 and 331 set out the reporting obligations of firms in the regulated sector, while section 333 outlines the offence of tipping off.
The term money laundering can be interpreted in different ways, however it is generally defined as the integration of criminal funds into the legitimate financial system with the aim of disguising their illegal origin (FATF, 2012b). It incentivises crime in that it allows criminals to realise the profits from their illegal activity, and allows them to use these to commit further unlawful acts. It undermines the integrity and stability of legitimate financial institutions, and it has detrimental impacts on both domestic and international economies (IMF, 2013: 1). As a result, it 's identification and prevention is in the public interest, and it is a focus of the financial community, governments and law-making bodies (Crown Prosecution Service, 2010: 2).
Money can be laundered in many different ways, from the simple, such as
Bibliography: Booth, R. and others, Money Laundering Law and Regulation: A Practical Guide, (Oxford University Press: Oxford 2011) Chatain, P Crown Prosecution Service, “Proceeds of Crime Act 2002 Part 7 – Money Laundering Offences”, [Online] (Crown Prosecution Service 2010), http://www.cps.gov.uk/legal/p_to_r/proceeds_of_crime_money_laundering/. [Accessed: 1 April 2013] Dare, P HM Treasury, “Reforming UK financial regulation”, [Online] (HM Treasury 2012) http://www.hm-treasury.gov.uk/fin_stability_regreform_structure.htm [Accessed 1 April 2013] International Monetary Fund, “The IMF and the Fight Against Money Laundering