Fraud Alert
Money Laundering, Proceeds of Crime and Asset Seizure
Money Laundering, Proceeds of Crime and Asset Seizure are all covered by the Proceeds of Crime Act and the Money Laundering regulations.
Whilst companies in the financial service sector have specific requirements to report their suspicions, all companies and individuals can be liable to prosecution.
There are wide definitions of ‘money’, ‘criminal property’ ‘proceeds’ and ‘assets’ which may se seized as a result of criminal offences or civil recovery procedures.
Money or other assets under the ‘control’ of somebody may be ‘tainted’ in connection with criminal activity, example situations are:
Money under your control and you know it comes from an act of dishonesty:
- A drug dealer taking cash for selling drugs.
- Claiming benefits and taking cash for undisclosed working.
- Declaring earnings for tax but putting additional cash in a hidden account to avoid additional tax.
The above are all varying acts of dishonesty and as such the money is tainted.
Money coming under your control where you are unsure as to its origins:
- A friend hands you £500 and tells you to look after it, or indeed spend it. You know your friend doesn’t have £500 in the sense of earnings/assets but you take the money without asking some sensible questions.
A simple way to appreciate this money is that it is criminally tainted and potentially anyone coming into contact with this tainted money is liable to investigation whereby a prosecution and asset seizure may occur.
- If a person takes sensible steps to understand where the money has come from this supports the honesty of that person.
The examples refer to money, but this does not have to be the case. Taking the examples above, the money is ‘tainted’ then anything bought by that money becomes tainted as well, for example, vehicles, jewellery, and homes. The property is in effect ‘Criminal Property’.
If a case is prosecuted, the courts can exercise the right to seize, force the sale of any goods recovered or indeed seen to have been spent. For example if a person has £10,000 (car, cash, jewellery) and spends it the court can still order the repayment of monies already spent/disposed of.
Other relevant Fraud Alert pages:
- Advance Fee Fraud – Paying money for a promise of wealth (419 Fraud)
- Accommodation Addresses, Office Services and Mail Services, “Virtual offices”
- Criminal Cash-Back, Cheque/Draft Overpayments, Shipping and Escrow fraud
- Company Fraud and Company Identity/Impersonation Fraud
- Employee and other internal threats
- House and Property purchase and take-over fraud
- Investments, Share, Land, Wine and other High Yield Investment Fraud
- Identity Fraud - Is someone using your identity?
- Internet, Advertising, Auction and On Line Fraud
- Lotteries - prizes winners and unsolicited awards, miracle cures, clairvoyants and other scams. - Mass Market Fraud
- Money Transfer – Advice when sending money to somebody you don’t know
- Working from home scams/financial intermediaries – Money Mules