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Money laundering

Money laundering offences

1.1 Definition

Money laundering is the process by which criminals attempt to conceal
the true origin and ownership of the proceeds generated by illegal
means, allowing them to maintain control over the proceeds and,
ultimately, providing a legitimate cover for their sources of income.

Money laundering involves 3 main stages:

1 Placement – where cash obtained through criminal activity is first placed into
the financial system.

2 Layering – where the illegal cash is disguised by passing it through complex
transactions making it difficult to trace.

3 Integration – where the illegally obtained funds are moved back into the
legitimate economy and is now 'clean'.

1.2 Offences

 Acquiring, possession or use of criminal property.

 Concealing or disguising or transferring criminal property, or removing it from
the country.

 Failure to disclose knowledge or suspicion of money laundering.

 Tipping off.

 Failure by a financial services business to meet their obligations under money
laundering regulations.

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