Money Laundering and POCA Investigations and Prosecutions

Money laundering is not only considered a threat to the financial system in Britain but is also thought to incentivise crime, increase cash flow for organised crime and assist with funding further criminal activities.

Individuals and businesses must stay ahead of compliance by taking specialist legal advice from a professional Money Laundering Solicitor.

Here at Saunders Law, we have decades of experience in helping clients who have been accused of money laundering. The consequences of breaching money laundering regulations are severe, which is why we offer a tenacious approach and robust legal representation to ensure you and your company’s reputation remains intact during an investigation.

What is Money Laundering? 

Money laundering is the process in which you “clean” money used in criminal proceedings to disguise the fact that it came from illicit origins. Criminals will try and use safe havens to hide their profits and avoid detection. Generally, money laundering is performed by introducing illegal money into the financial system and making it appear to be legitimate company assets. This does not always have to be in monetary form – it can also be done via land and buildings, technology and intellectual property. 

Individuals and businesses may become unintentionally involved in the acquisition or transfer of money which is, or could be, the proceeds of criminal activity. This is a complicated area of law and without the correct legal advice can lead to serious consequences if regulations are not complied with – even when this is accidental.

If you are the subject of a money-laundering investigation, get in touch with our professional Criminal Defence Solicitors today.

Proceeds of Crime

Following a conviction for an offence which has generated proceeds of crime, i.e illegally gained wealth, a defendant will usually be subject to confiscation proceedings.

The confiscation procedure is governed by the Proceeds of Crime Act 2002 and is a draconian regime which often places a large financial burden on the defendant.

To make things more difficult, in a lot of cases the defendant will have to try and satisfy the confiscation order from within prison.

The initial stage of confiscation is determining the ‘benefit figure’ which is basically the amount the court decides the defendant has gained during the criminal offending.

In certain circumstances the court can decide that a defendant has a ‘criminal lifestyle’.

This can occur in particular offences, such as money laundering or drug dealing; where the defendant has been convicted of multiple offences or in the case of a defendant whose offending has occurred over a period of at least 6 months.

The starting point is that the benefit figure will reflect the financial benefit from the particular criminal offending, for example the £10,000 made from a drug sale.

However, if a defendant is deemed to have a criminal lifestyle, the court can take into account all of the defendant’s assets and expenditure over a 6 year period and include them in the benefit figure unless the defendant can show that the funds came from a legitimate source.

So if the defendant bought a car 4 years previously and can’t show where the cash came from, this amount will be added to the benefit figure. If the defendant received a bank transfer 2 years previously and can’t remember where it came from, this will also be added to the benefit figure.

Once the benefit figure has been ascertained, the court must decide on the ‘recoverable amount’.

This amount is often equal to the benefit from the offending.

However, if the defendant does not have enough assets to pay the full amount, the court will make an order for a lower figure.

In order to make this decision, the prosecution undertakes a full forensic examination of the defendant’s accounts and records to see what is available.

The confiscation order requires a monetary payment, rather than handing over particular assets.

For example, if the defendant owns a car worth £5,000, the defendant will need to sell the car to try and raise the £5,000 to pay the order.

The court can allow a defendant up to 6 months to pay the confiscation amount.

If the defendant is unable to pay it in full, the court can impose a period of imprisonment.

The higher than confiscation amount, the higher the prison sentence. Even if the defendant serves a prison sentence, this does not mean that the debt is written off; it must still be paid in the future and with additional interest.

A defendant can apply to the Crown Court to vary the amount of a confiscation order, if the available amount that they have to pay the order is inadequate. The court must then make a fresh calculation of the available amount as of that date. If the court agrees that the available amount is inadequate, it can substitute a smaller amount that it considers just.

If you need assistance in relation to allegations relating to the proceeds of crime please contact one of our specialist solicitors today.