Proceeds of Crime Act 2002 Explanatory Notes

Section 338: Authorised disclosures

493.Section 338 sets out the circumstances in which a disclosure will be ‘authorised’ for the purposes of affording a defence to the principal money laundering offences in sections 327 to 329. Where a disclosure is ‘authorised’ for these purposes, then it is not to be taken to breach any rule which would otherwise restrict that disclosure.

494.This is necessary because, in the course of their business, those working inside or outside the regulated sector may need to complete a transaction that they know or suspect could constitute one of the three principal money laundering offences. This section gives them the means of obtaining the authorisation necessary to complete the transaction, if the disclosure is made before a transaction is completed; or provides a defence against the failure to disclose offence if the disclosure is made as soon as possible after the transaction has taken place and there was a good reason not to make it before.

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