The UK has one of the strictest anti-money laundering (AML) regimes in the world. Preventing “dirty money” from entering the financial system is a top government priority and businesses, financial institutions and professionals—including solicitors, accountants, bankers and estate agents—are required to comply with the Money Laundering Regulations 2017 (as amended).

Failure to comply is a criminal offence, making early legal advice critical.

What is Money Laundering?

Money laundering is the process of disguising the origins of criminal proceeds so that the funds appear legitimate. In simple terms, it is the “cleaning” of dirty money.

There are typically three stages:

1. Placement – Introducing criminal funds into the financial system. This stage is often where most cases are detected.

2. Layering – Moving funds through complex transactions, including offshore companies or trusts, to obscure their origin.

3. Integration – Reinvesting the disguised funds into legitimate assets such as property, businesses or investments.

Money Laundering Offences under the Proceeds of Crime Act 2002 (POCA)

The main offences include:

• Concealing offence – concealing, disguising, converting, transferring or removing criminal property

• Arranging offence – entering into arrangements to facilitate another person’s acquisition, retention, use or control of criminal property

• Acquisition, use, or possession offence – acquiring, using or holding criminal property while knowing or suspecting its origin

Concealing Offence

A concealing offence occurs when someone disguises, converts, transfers or removes criminal property.

Available defences include:

• Making an authorised disclosure under POCA Section 338

• Having a reasonable excuse for not reporting

• Demonstrating that the activity occurred outside the UK and was lawful in that jurisdiction

• Showing that the property was not criminal, or that you did not know or suspect its criminal origin

Arranging Offence

An arranging offence arises when a person knowingly enters into a situation that facilitates another person’s control or use of criminal property, often during the layering or integration stages.

The prosecution must prove:

• You knew or suspected the arrangement involved criminal property

• The property existed at the time of the arrangement

• The property was derived from criminal conduct or circumstances make criminal involvement inevitable

Acquisition, Use, or Possession Offence

This offence occurs when someone acquires, uses or possesses criminal property whilst knowing or suspecting its origin.

• The law does not require proof of dishonesty: suspicion alone is sufficient

• Suspicion means believing there is a real possibility (more than a fanciful idea) that the property derives from crime

• Defences are available for authorised disclosures, reasonable excuses or if the conduct was lawful abroad

Penalties for Money Laundering

Money laundering offences under POCA carry serious penalties, including:

• Up to 14 years’ imprisonment

• Unlimited fines

• Consideration of aggravating factors, such as terrorism, organised crime or drug trafficking

Courts assess culpability, harm caused, and aggravating or mitigating factors when determining sentencing.

Why Early Advice Matters

Facing an AML investigation, whether as an individual or an organisation, can have serious legal, financial and reputational consequences. Early legal support helps you:

• Protect your rights and interests

• Understand regulatory and criminal implications

• Plan a strategic response before authorities take further action

• Minimise the risk of fines, prosecution or reputational damage

Who We Represent

We advise a wide range of clients, including:

• Individuals suspected of, or accused of, money laundering

• Lawyers, accountants and estate agents

• Trust and company formation agents

• Investment banks, fund managers and corporate clients

We handle investigations arising from fraud, corruption, terrorist financing or facilitation of illicit funds and across cash, electronic payments, cryptocurrency and property transactions.

Why You Need Specialist Solicitors

Defending money laundering allegations is often complex, involving multiple jurisdictions, corporate structures and trust arrangements. Our solicitors:

• Have deep knowledge of AML law and POCA offences

• Can advise on cross-border and corporate cases

• Provide strategic support at all stages of the investigation, including police interviews, pre-charge engagement and trial preparation

• Help protect your rights, liberty and reputation

Contact our Money Laundering Specialists

If you are under investigation or charged with a money laundering offence, contact our team immediately. Early legal advice is crucial to building a proactive defence and achieving the best possible outcome.