Money Laundering

 

 

 

 

 

 

 

 

 

 

What is Money Laundering?

 

Practitioners need to be aware of the requirements of the anti-money laundering provisions of the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007 (which replaced the Money Laundering Regulations 2003 from 15th December 2007). The original provisions came into effect on 1st March 2004 and apply to any knowledge or suspicion of money laundering that arises after that date.

 

The following commentary provides a very brief outline of the main money laundering provisions. It is not intended as a full exposition of the law relating to this subject and should not be taken as such.

 

Money laundering is specifically defined by the legislation. It occurs when someone:-

 

    • Conceals, disguises, coverts, transfers or removes (from the UK) criminal property

 

    • Enters into or is concerned in an arrangement which they know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person

 

    • Acquires, uses or has possession of criminal property.

 

 

 

 

And they know or suspect that the property constitutes or represents a benefit from criminal conduct.

 

Tax evasion is criminal conduct, and criminal property includes the proceeds of tax evasion, no matter how small the amount; there in no de minimis limit. Examples of what constitutes money laundering in the field of taxation include:-

 

    • Deliberately understating profits

 

    • Deliberately overstating expenses

 

    • Failing to notify HMRC, once it comes to light, of an innocent or negligent error which leads to a loss of tax

 

    • Failing to notify HMRC of an over-repayment of tax when the repayment is known to be excessive.

 

 

 

 

Back to Our Services

 

Call KinsellaTax NOW on 0800 471 4546.

More Information

Money Laundering Report - Tax Investigations

When to Make a Report   If, in the course of his or her professions, a practitioner suspects, or ought to have suspected that someone has…

Money Laundering Tipping Off

Tipping Off It is an offence under the legislation for the practitioner to tell someone that it is known or suspected that a report is to…

Money Laundering Overseas Offences

Overseas Offences   Originally the legislation required that a report be made even if the acts which produced the proceeds took place in a country overseas…

Money Laundering Privilege

Privilege   An exemption from reporting knowledge or suspicion of money laundering that came to a person in privileged circumstances was originally available only to lawyers.…

Money Laundering Steps Required

Steps Required   Practitioners are required to take certain steps to comply with the money laundering regulations. They must:-   Appoint a money laundering reporting officer…

Money Laundering Guidance - Tax Investigation Advice

HMRC Guidance on Money Laundering   After the introduction of the Money Laundering Regulations 2007 (SI 2007/2157), HMRC issued guidance on how to go about registering…

Money Laundering Registration – Tax Investigation Advice

REGISTRATION AND SUPERVISION   HMRC are responsible for supervising businesses that are required to register under the Money Laundering Regulations 2007. All businesses covered by the…
Translate »