ECSH23000 - The Proceeds of Crime Act 2002

The Proceeds of Crime Act 2002 (POCA) sets out the primary offences related to money laundering (and defines money laundering) at Part 7, sections 327-329 as follows: 

● Concealing, disguising, converting, transferring or removing criminal property from the United Kingdom (section 327). 

● Entering into or becoming involved in an arrangement which facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (section 328 POCA). 

● The acquisition, use and/or possession of criminal property (section 329 POCA). 

POCA also makes it an offence for a person to fail to disclose or report suspicious activity (i.e. knowledge or suspicion of money laundering) to a nominated officer or a person authorised by the National Crime Agency (NCA) where that information came to the person in the course of a business in the supervised (regulated) sector (section 330) and for tipping off any person that you’ve reported or intend to report where this is likely to prejudice any investigation (section 333A POCA). There is a similar offence which applies to nominated officers under section 331 POCA.  

However, it will be a defence under section 330(6) POCA if a person can demonstrate they had a reasonable excuse for not making the required disclosure to the nominated officer or a person authorised by the NCA. It will also be a defence for the nominated person or person authorised by the NCA for failing to make the required disclosure if they too have a reasonable excuse for not doing so (section 331(6) POCA). Section 331(6A) POCA also provides that it will equally be a defence to demonstrate that the money laundering offence occurred in a territory outside the UK.  

Disclosures to the NCA are made by way of Suspicious Activity Reports (SARs) The NCA have published guidance on making SARs on their website.