Free Law Dissertations - Law Finance And Investment Law Explain The Current Legislative And
LAW FINANCE AND INVESTMENT LAW
Explain the current legislative and regulatory arrangements existing in the United Kingdom in relation to the combating of money laundering.
Introduction
Changes in the law, new political and social priorities, and a new regulatory framework have forced anti-money laundering right up the scale of senior management concerns. Rightly, firms now recognise that their financial crime risks, regulatory risks, and risks to their reputation have hugely increased.
Money laundering is primarily covered under two pieces of UK legislation which are, the Proceeds of Crime Act 2002 (Business in the Regulated Sector and Supervisory Authorities) Order 2003 and the Terrorism Act 2000 (Business in the Regulated Sector and Supervisory Authorities) Order 2003. The specific criminal offences under these provisions will be identified in part one in terms of the required elements for constitution of these crimes and possible defences.
Part two will explain the regulatory arrangements that exist in the UK under the Money Laundering Regulations 2003. This part will explain the provisions applicable to the relevant businesses under the Regulations, systems and training that are to be put in place in order to combat money laundering, legal requirements for the identification of clients, procedures for the keeping of records and the key report procedure.
Part One Legislative Arrangements
AWhat is Money Laundering?
1.The Statutory definition
In order to fully understand the breakdown of legislative arrangements that are in place for Money Laundering offences, it is crucial to fully understand the nature of the activity. By definition s 340(11) of the Proceeds of Crime Act 2002 defines the activity as constituting:
an offence under ss 327, 328 or 329an attempt, conspiracy or incitement to commit one of those offencesaiding, abetting, counselling or procuring the commission of one of those offencesany of theoffences if done in the UK
Money Laundering therefore constitutes the concealment, arrangement or acquisition, use or possession of criminal property. Criminal Property is also defined as a benefit derived from criminal conduct which is obtainable diectly or indirectly. Therefore property need only have come via the person in order for the actus reus of the criminal offences under the above provisions of the 2002 Act to be satisfied. With regard to the mens rea the provisions of each of the crimes state that the offender must know of or suspect that the conduct is connected with the creation of a benefit from the proceeds of crime
Initial Observations
Money Laundering encompasses a huge variety of activities, of which examples constute crimes in relation to everything from the handling of the proceeds of selling the stolen contents of a car, to the mass disposal and source concealment of the annual proceeds of a global drugs trafficking operation.
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