The Proceeds of Crime Act 2002

The Proceeds of Crime Act 2002 applies to everyone, it is not specific to financial services, insurance or the sectors to which the Money Laundering Regulations apply.

The Proceeds of Crime Act 2002 (POCA) became law in January 2003. The legal position for money laundering activities is now primarily governed by this Act.

The law is further underpinned, however, by amendments made in the Serious Organised Crime and Police Act 2005 and the implementation of European Directives via the Money Laundering Regulations, plus there are additional considerations imposed by the Terrorism Act 2000.

However POCA is still very important as the statute that covers the major money laundering offences.

Offences Under the Act

The main types of offence under the Proceeds of Crime Act 2002 are laundering or assisting someone else in laundering the proceeds of crime.
Under this category, all of the following are considered offences:

• Concealing, disguising, converting or transferring criminal property.
• Assisting somebody else to acquire, retain, use or control criminal property.
• Personally acquiring, using or having possession of criminal property.
• Failing to report knowledge or suspicion of money laundering.
• Tipping off, or giving somebody warning, that their activity might come under scrutiny by the authorities.