Anti -Money Laundering Policy June 2021
2 What is money laundering
2.1 Money laundering can be defined as "a process that makes money with an illegal origin appear legal so that it may be used." The aim is to legitimise the possession of such monies through circulation and this effectively leads to "clean" funds being received in exchange. As a result, the obligations now impact on certain areas of local authority business and require local authorities to establish internal procedures to prevent the use of their services for money laundering.
2.2 A range of activities and offences concerning money laundering is included within the following pieces of legislation:
- Proceeds of Crime Act 2002 (the POCA) (as amended by the Serious Organised Crime and Police Act 2005, Crime and Courts Act 2012, Serios Crime Act 2015 and Criminal Finances Act 2017),
- Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended by the Money Laundering and Terrorist Financing (amendment) Regulations 2019
- The Terrorism Act 2000 (as amended by the Criminal Finances Act 2017)
- Offences under the Bribery Act 2010 may also constitute Money Laundering.
2.3 The legislation covers all criminal property where the alleged offender knows or suspects the property constitutes or represents benefit from any criminal conduct.
- all real, personal, heritable or 'moveable property'
- intangible and incorporeal property
- property obtained by a person who has an interest in it
- things in action and other intangible or incorporeal property
2.4 The primary offences ones are listed below; further details are provided in Appendix A: Offences Table:
- concealing, disguising, converting or transferring criminal property or removing it from the UK;
- entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person;
- acquiring, using or possessing criminal property;
- failure to disclose knowledge or suspicion of another person(s) involvement in money laundering; and
- tipping off or making a disclosure which is likely to prejudice an investigation being carried out by a law enforcing authority, knowing that such an investigation is in motion.
2.5 Where an employee/Member suspects money laundering and reports, or are aware that someone else has, they must exercise caution in what is discussed with others as a further offence of "tipping off" may be committed if, knowing or suspecting a disclosure has been made, the employee/Member take any action which is likely to prejudice any investigation that may be conducted.
2.6 It is impossible to give a definitive list of ways in which to spot money laundering or how to decide whether to make a report. Facts which tend to suggest that something 'odd' is happening may be sufficient for a reasonable suspicion of money laundering to arise. Risk factors which may, either alone or cumulatively with other factors, suggest the possibility of money laundering activity are provided at
Appendix B: Possible Signs of Money Laundering.
2.7 Potentially any employee could be caught by the money laundering provisions if they suspect money laundering and either become involved with it in some way and / or do nothing about it. Whilst the risk to the Council of contravening the legislation is low, it is extremely important that all members and employees are familiar with their legal responsibilities. Serious criminal sanctions may be imposed for breaches of the legislation.