Page 271 - F1 - AB Integrated Workbook STUDENT 2018-19

Fraud, fraudulent behaviour, and their prevention in business

Money laundering

5.1 Definition

Money laundering is the exchange of ‘dirty’ money and assets that
have been criminally obtained for ‘clean’ money and assets that have
no clear link to criminal activity.

Typical money laundering legislation recognises three main offences relating to
money laundering.

 Laundering – this may involve acquiring, using or possessing criminal property,
handling or being involved with criminal activity, investing the proceeds of
criminal activity or transferring criminal property.

 Failure to report – failing to disclose proof or suspicion of money laundering
can carry a maximum 5 year prison term, along with fines.

 Tipping off – disclosure of information which may prejudice a money
laundering investigation carries a maximum 2 year prison term.

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