Money laundering; what is it? A guide to UK law ABV Solicitors You may have heard of the term ‘money laundering’ concerning businesses and corporations and may be uncertain about what it means. This can be a particular problem if you are the head of a business or corporation and have found yourself on the receiving end of a money laundering accusation. Under UK law, money laundering is considered a very serious offence as, simply put, it is usually linked to illegal activities and is a way for businesses, corporations or people to avoid paying taxes. So, if you find yourself under the accusation of money laundering, you need to seek out the help of a fraud solicitor as soon as possible. To help you make a bit more sense of the process, the following guide has been put together by a fraud solicitor to help you understand the terminologies used relating to money laundering, how you can prevent it in your business and the sentencing laws. What is money laundering? Money laundering is when someone hides the original source of money linked to their business. This is usually done because the money has been obtained through illegal activity, such as drugs or human trafficking. If you or one of your associates have been accused of money laundering, you will need to contact a fraud solicitor within the UK as soon as possible to seek advice. They will aim to help you identify and prove the source of the money or assets that are under question and will defend your corner if you have come under suspicion due to your business relationships with another person who has been found guilty or is being accused of this crime. Money laundering offences There are 3 money laundering offences that you can be accused of and according to a fraud solicitor and the Proceeds of Crime Act 2002 these are as follows: ● the concealing offence- the concealment of where the money originated from ● the arranging offence- arranging to hide the origin of the money ● acquisition use or possession offence- if you obtain the money that has been gained via illegal processes and you are spending it or hiding it, this falls under that category. All of these are very serious and will need the help of a fraud solicitor to defend. Signs of money laundering It is not simply the case that you are accused of money laundering; there may be evidence of it in your business that you have been unaware of. Some of the signs to look out for relating to money laundering include unnecessarily complicated structures relating to money transfers in your business, secret or suspicious behaviour from a member of your staff or one of your clients, or an entity in a transaction that has no clear need, or the presence of a middleman. If you see any of these signs within your corporate structure, please contact the police and get the advice of a fraud solicitor. Guards against money laundering in businesses You can prevent money laundering in your business by hiring accountants to oversee your processes and by employing a fraud solicitor to also look at the guards you have in place. You will also need to have a more stringent input into what happens in your business and the movement of money and will need to employ fewer people to oversee this process. Sentencing The sentencing for money laundering in the UK has a maximum of 14 years in prison and can have a very detrimental impact on your business name, so be sure to seek out a fraud solicitor if you find yourself on the receiving end of this accusation. https://www.abvsolicitors.co.uk/services/serious-fraud-and-business-crime/ https://www.ifa.org.uk/technical- resources/aml#:~:text=In%20UK%20law%20money%20laundering%20is%20defined %20in,facilitating%20any%20handling%20or%20possession%20of%20criminal%20pr operty. https://www.lawsociety.org.uk/topics/anti-money-laundering/