The Proceeds of Crime Act 2002 (POCA) criminalizes money laundering, the acquisition, possession, concealment, and transfer of criminal property, and entering into arrangements that facilitate money laundering by another person.1 POCA also requires firms in the regulated sector to report suspicious transactions. Finally, POCA authorizes the imposition of confiscation orders following conviction, civil recovery proceedings in the High Court, and cash forfeiture in the Magistrates’ Court.
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (2017 Regulations) require firms in the regulated sector to conduct customer due diligence, monitor transactions, and implement effective policies and procedures to manage the risks of money laundering. The 2017 Regulations brought the UK’s AML regime into compliance with the EU Fourth Anti-Money Laundering Directive. The 2017 Regulations were amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (2019 Regulations) and the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (2020 Regulations). The 2019 on 2020 Regulations brought the UK’s AML regime into compliance with the EU Fifth Anti-Money Laundering Directive and also made certain changes to address the impact of Brexit.
Supervisory authorities publish sector-specific guidance for businesses within their jurisdiction to reduce financial crime risk. For example, the FCA publishes guidance for financial services firms, and the legal sector supervisors publish guidance for solicitors.
1 Proceeds of Crime Act 2002, c. 29 (UK).