Anti-money Laundering Systems in the UK

Anti- bullion Laundering Systems in the UKIntroduction notes launder is the term used to describe the process that disguises the (usually miserable) source of money.1 The process of money wash involves three recognisable stages. The first is the placement stage when the proceeds of the crime, often in cash, ar placed into the financial system, for example, by being depositing in a bank. The second is the layering stage whereby the proceeds argon moved, usually through a series of transactions perhaps involving different entities, different assets, and different jurisdictions, in array to sever any audit trail and hence make tracing their origins harder. The third stage is integration when the criminal resumes go of the proceeds, free from any association to their criminal source. An examination will be made of the statement that forms the subject matter of this essay. As an outline, this essay will contemplate the extent to which the fall in Kingdoms anti-money wash regime see ks to address each stage of the process of money laundering. To conclude this essay will briefly reflect on the effectiveness of the UK regime. It must be straind that in an essay of this nature, large and complex topics will have to be reduced.The UK regimeThe Proceeds of Crime Act 2002Banks and other financial institutions urge on the three stages of money laundering and lend an air of respectability to the proceeds when they eventually reappear, therefore the financial and related sectors have always been positioned at the principal of the drive to combat money laundering. The UK regime which implements the EU property Laundering Directives, FATF international standards and UN anti-terrorist financing measures, comprises three main components as far as banks are concerned.First, there is the primary legislation, the Terrorism Act 2000 (TACT) and the Proceeds of Crime Act 2002 (POCA) which creates a number of money laundering and related discourtesys. The so-called relegated sector2 is subject to additional discourtesys to encourage its co-operation in reporting suspicious activities and transactions.Part 7 of POCA created three substantive money laundering offences, concealing3, understandings4 and acquisition, use and possession5. The three offences are wide in a number of respects.First, the three principal money laundering offences must be related to criminal station6 which is very broadly defined as any benefit7 from any criminal conduct in any part of the UK or would constitute an offence in a part of the UK if it occurred there8. The heart of criminal property has been the subject of a number of Court of Appeal decisions, most recently R v Akhtar 2011 EWCA Crim 146, a mortgage broker who had allegedly submitted dishonest claims for and on behalf of his co-defendants, was not guilty of entering into or becoming concerned in money laundering arrangements. Clarke LJ submitted that the natural an ordinary meaning of s328(1) is that the arrangem ent to which it refers must be one which related to property at the time when the arrangement begins to operate on it9. Criminal property has the same meaning in respect of all three principal money laundering offences as set out in s340 It does not embrace property which the accused intends to go by criminal conduct Property is not criminal property because the wrongdoer intends that it should be10 Akhtar followed R v Loizou 2005 EWCA Crim. 1579, where the court ruled that no offence under s327 was made as the property was not criminal at the point of transfer. To say that it extends to property which was originally legitimate but became criminal tho as a result of carrying out the arrangement is to stretch the language of the Section beyond its proper limits11. analysis add facts of the case and relate to stages of ML)R. v Afolabi == re. s329 mention round of the factsThen conclude with test in Geary on part 7 and then further anaylsis on the extentof the act in stages of ML.Sc ope http//www.criminallawandjustice.co.uk/clj-reporter/R-v-Geary-2010-EWCA-Crim-1925Arguments that criminal property definition needs to be revised ArticleA qualified case for treatment money laundering and knowledgeSecondly, Liability arises if alleged money launder knows see online book discussion between Hudson and Forston page 11 and 12 casesThirdly, Drafted to cover every conceivable offence casesMens rea casesSupplementary money laundering offences The failure to report offences Tipping offAs mentioned above banks and other financial institutions facilitate the three stages of money laundering, as such it is crucial to obtain the co-operation of those institutions who are essential for money laundering to occur at all. Section 330 and 331 of POCA create two new offences of failing to make a required disclosure as soon as practicable after suspicion of money laundering is or ought to have been aroused. The term required qualifies the disclosure in order to emphasise th at the failure to report is a criminal offence.Slaughter and May unregulated sectorThe Terrorism Act 2000 and related provisionsThe Money Laundering Regulations 2007The Money Laundering Regulations 200712 require relevant persons13 to operate their business in accordance with specified systems and procedures designed to combat money laundering and the finance of terrorism. The potential criminal liability laid out by the Supplementary money laundering offences discussed above together wit the regulatory requirements under the 2007 Regulations has caused the financial sector to enfold wide-ranging processes and procedures to ensure that its officers and employees fulfil these disclosure14 obligations and hence that they do not fall foul of the criminal sanctions.The FSA HandbookProblems posed to banks by money laundering controlConclusionI student number declare that this piece of work contains words.BibliographyArticlesShula de Jersey of Russell Jones Walker (2011). Wide but not unbounded the definition of criminal property Money L.B. 2011, 186, 17-18. Money Laundering BulletinCL J (2011) Knowingly submitting a dishonest claim C.L. J. 2011, 175(6), 78-79. Criminal Law nicety WeeklyKenneth Murray, (2012) A suitable case for treatment money laundering and knowledge, Journal of Money Laundering Control, Vol. 15 Iss 2, pp.188 197BooksEllinger, E.P and Lomnicka, E and Hare, C.V.M Banking Law (Oxford University Press)The Law relating to financial crime in the United Kingdom / Karen Harrison and Nicholas Ryder Hudson, Law of Finance (first edition, 2009, Sweet Maxwell) Encyclopaedia of Banking Law (available via Lexis Library) Pagets Law of Banking (available via Lexis Library)LegalisationProceeds of Crime Act 2002Money Laundering Regulations 2007/2157Otherhttp//www.airant.it/pdf/MLB%20Sept%202011_0.pdf Accessed 03 treat 2014http//www.criminallawandjustice.co.uk/clj-reporter/R-v-Akhtar-2011-All-ER-D-214-Jan Accessed 03 March 2014http//www.criminallawandjus tice.co.uk/clj-reporter/R-v-Geary-2010-EWCA-Crim-1925 Accessed 05 March 2014http//www.emeraldinsight.com/journals.htm?issn=1368-5201volume=15issue=2articleid=17031335show=html Accessed 05 March 2014CasesAllen v Gold Reefs of West Africa 1900 1 Ch. 6561 Ellinger, E. P. 2011 Modern Banking Law Oxford University Press. pp922 Including banks, financial entities regulated by the Financial exonerate Authority such as accountants, lawyers, estate agents, traders in high value goods, casino operators.3 s327 POCA 20024 s328 POCA 20025 s329 POCA 20026 POCA 2002, s.340(3)7 See provisions extending the meaning of benefit in s.340(5)-(8)(including pecuniary emolument) and those as to property (s.340(9)).8 No restrictions are placed on the predicate offence, as long as the conduct generating the property is regarded as an offence in any part of the UK, thus it does not need to be an offence in the country in which it is committed.9 R v Geary 2010 EWCA Crim 192510 Lord Justice Elias in Amir and Akhtar11 Lord Justice Moore-Bick in R v Geary12 S.I. 2007/2157 (as amended by S.I. 2007/3299 and S.I. 2009/209, in force on 15 December 2007 and regenerate the 2003 Regulations.13 Reg 3 Application of the Regulations14 More usually called reporting.