Part 7Money Laundering
Offences
327 Concealing etc
1
A person commits an offence if he—
a
conceals criminal property;
b
disguises criminal property;
c
converts criminal property;
d
transfers criminal property;
e
removes criminal property from England and Wales or from Scotland or from Northern Ireland.
2
But a person does not commit such an offence if—
a
he makes an authorised disclosure under section 338 and (if the disclosure is made before he does the act mentioned in subsection (1)) he has the appropriate consent;
b
he intended to make such a disclosure but had a reasonable excuse for not doing so;
c
the act he does is done in carrying out a function he has relating to the enforcement of any provision of this Act or of any other enactment relating to criminal conduct or benefit from criminal conduct.
3
Concealing or disguising criminal property includes concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it.
328 Arrangements
1
A person commits an offence if he enters into or becomes concerned in an arrangement which he knows or suspects facilitates (by whatever means) the acquisition, retention, use or control of criminal property by or on behalf of another person.
2
But a person does not commit such an offence if—
a
he makes an authorised disclosure under section 338 and (if the disclosure is made before he does the act mentioned in subsection (1)) he has the appropriate consent;
b
he intended to make such a disclosure but had a reasonable excuse for not doing so;
c
the act he does is done in carrying out a function he has relating to the enforcement of any provision of this Act or of any other enactment relating to criminal conduct or benefit from criminal conduct.
329 Acquisition, use and possession
1
A person commits an offence if he—
a
acquires criminal property;
b
uses criminal property;
c
has possession of criminal property.
2
But a person does not commit such an offence if—
a
he makes an authorised disclosure under section 338 and (if the disclosure is made before he does the act mentioned in subsection (1)) he has the appropriate consent;
b
he intended to make such a disclosure but had a reasonable excuse for not doing so;
c
he acquired or used or had possession of the property for adequate consideration;
d
the act he does is done in carrying out a function he has relating to the enforcement of any provision of this Act or of any other enactment relating to criminal conduct or benefit from criminal conduct.
3
For the purposes of this section—
a
a person acquires property for inadequate consideration if the value of the consideration is significantly less than the value of the property;
b
a person uses or has possession of property for inadequate consideration if the value of the consideration is significantly less than the value of the use or possession;
c
the provision by a person of goods or services which he knows or suspects may help another to carry out criminal conduct is not consideration.
330 Failure to disclose: regulated sector
1
A person commits an offence if each of the following three conditions is satisfied.
2
The first condition is that he—
a
knows or suspects, or
b
has reasonable grounds for knowing or suspecting,
that another person is engaged in money laundering.
3
The second condition is that the information or other matter—
a
on which his knowledge or suspicion is based, or
b
which gives reasonable grounds for such knowledge or suspicion,
came to him in the course of a business in the regulated sector.
4
The third condition is that he does not make the required disclosure as soon as is practicable after the information or other matter comes to him.
5
The required disclosure is a disclosure of the information or other matter—
a
to a nominated officer or a person authorised for the purposes of this Part by the Director General of the National Criminal Intelligence Service;
b
in the form and manner (if any) prescribed for the purposes of this subsection by order under section 339.
6
But a person does not commit an offence under this section if—
a
he has a reasonable excuse for not disclosing the information or other matter;
b
he is a professional legal adviser and the information or other matter came to him in privileged circumstances;
c
subsection (7) applies to him.
7
This subsection applies to a person if—
a
he does not know or suspect that another person is engaged in money laundering, and
b
he has not been provided by his employer with such training as is specified by the Secretary of State by order for the purposes of this section.
8
In deciding whether a person committed an offence under this section the court must consider whether he followed any relevant guidance which was at the time concerned—
a
issued by a supervisory authority or any other appropriate body,
b
approved by the Treasury, and
c
published in a manner it approved as appropriate in its opinion to bring the guidance to the attention of persons likely to be affected by it.
9
A disclosure to a nominated officer is a disclosure which—
a
is made to a person nominated by the alleged offender’s employer to receive disclosures under this section, and
b
is made in the course of the alleged offender’s employment and in accordance with the procedure established by the employer for the purpose.
10
Information or other matter comes to a professional legal adviser in privileged circumstances if it is communicated or given to him—
a
by (or by a representative of) a client of his in connection with the giving by the adviser of legal advice to the client,
b
by (or by a representative of) a person seeking legal advice from the adviser, or
c
by a person in connection with legal proceedings or contemplated legal proceedings.
11
But subsection (10) does not apply to information or other matter which is communicated or given with the intention of furthering a criminal purpose.
12
Schedule 9 has effect for the purpose of determining what is—
a
a business in the regulated sector;
b
a supervisory authority.
13
An appropriate body is any body which regulates or is representative of any trade, profession, business or employment carried on by the alleged offender.
331 Failure to disclose: nominated officers in the regulated sector
1
A person nominated to receive disclosures under section 330 commits an offence if the conditions in subsections (2) to (4) are satisfied.
2
The first condition is that he—
a
knows or suspects, or
b
has reasonable grounds for knowing or suspecting,
that another person is engaged in money laundering.
3
The second condition is that the information or other matter—
a
on which his knowledge or suspicion is based, or
b
which gives reasonable grounds for such knowledge or suspicion,
came to him in consequence of a disclosure made under section 330.
4
The third condition is that he does not make the required disclosure as soon as is practicable after the information or other matter comes to him.
5
The required disclosure is a disclosure of the information or other matter—
a
to a person authorised for the purposes of this Part by the Director General of the National Criminal Intelligence Service;
b
in the form and manner (if any) prescribed for the purposes of this subsection by order under section 339.
6
But a person does not commit an offence under this section if he has a reasonable excuse for not disclosing the information or other matter.
7
In deciding whether a person committed an offence under this section the court must consider whether he followed any relevant guidance which was at the time concerned—
a
issued by a supervisory authority or any other appropriate body,
b
approved by the Treasury, and
c
published in a manner it approved as appropriate in its opinion to bring the guidance to the attention of persons likely to be affected by it.
8
Schedule 9 has effect for the purpose of determining what is a supervisory authority.
9
An appropriate body is a body which regulates or is representative of a trade, profession, business or employment.
332 Failure to disclose: other nominated officers
1
A person nominated to receive disclosures under section 337 or 338 commits an offence if the conditions in subsections (2) to (4) are satisfied.
2
The first condition is that he knows or suspects that another person is engaged in money laundering.
3
The second condition is that the information or other matter on which his knowledge or suspicion is based came to him in consequence of a disclosure made under section 337 or 338.
4
The third condition is that he does not make the required disclosure as soon as is practicable after the information or other matter comes to him.
5
The required disclosure is a disclosure of the information or other matter—
a
to a person authorised for the purposes of this Part by the Director General of the National Criminal Intelligence Service;
b
in the form and manner (if any) prescribed for the purposes of this subsection by order under section 339.
6
But a person does not commit an offence under this section if he has a reasonable excuse for not disclosing the information or other matter.
333 Tipping off
1
A person commits an offence if—
a
he knows or suspects that a disclosure falling within section 337 or 338 has been made, and
b
he makes a disclosure which is likely to prejudice any investigation which might be conducted following the disclosure referred to in paragraph (a).
2
But a person does not commit an offence under subsection (1) if—
a
he did not know or suspect that the disclosure was likely to be prejudicial as mentioned in subsection (1);
b
the disclosure is made in carrying out a function he has relating to the enforcement of any provision of this Act or of any other enactment relating to criminal conduct or benefit from criminal conduct;
c
he is a professional legal adviser and the disclosure falls within subsection (3).
3
A disclosure falls within this subsection if it is a disclosure—
a
to (or to a representative of) a client of the professional legal adviser in connection with the giving by the adviser of legal advice to the client, or
b
to any person in connection with legal proceedings or contemplated legal proceedings.
4
But a disclosure does not fall within subsection (3) if it is made with the intention of furthering a criminal purpose.
334 Penalties
1
A person guilty of an offence under section 327, 328 or 329 is liable—
a
on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both, or
b
on conviction on indictment, to imprisonment for a term not exceeding 14 years or to a fine or to both.
2
A person guilty of an offence under section 330, 331, 332 or 333 is liable—
a
on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both, or
b
on conviction on indictment, to imprisonment for a term not exceeding five years or to a fine or to both.