Is boss money laundering? Financial Times

Published on 24 Oct 2009 under category: cubism

By Dan Hyde, Consultant at Cubism Law

As published in The Financial Times 24 October 2009

I have noticed over the last months that our company profits do not tally with our projections and I am concerned that one of the directors may have been laundering money through the business. I have no definite proof. What do you advise?

Money laundering is governed by the Proceeds of Crime Act 2002. It creates various offences under sections 327-329 to include acquiring, using possessing, concealing, disguising, converting, transferring or removing criminal property (this includes money). Other offences are committed if a person engages in or enters into an agreement which he knows or suspects facilitates the acquisition, retention or control of that criminal property by another.

You do not provide detail as to the activities of your business but it will be a “regulated” business if it falls within the schedule 9 definition. A business in the “regulated” sector is subject to further sections that create offences for failing to disclose suspected money laundering.

You may be committing one or more of the above offences if you do not disclose your suspicions to the Serious Organised Crime Agency on the appropriate prescribed form. The disclosure may also provide you with some protection from prosecution as, if done properly, it prevents an offence being committed.

You should urgently obtain legal advice to ensure you fully comply with any disclosure requirements and avoid a possible criminal offence by you or others.

Dan Hyde is a white collar crime specialist at Cubism Law, a law firm.