PART 5Miscellaneous

Money laundering and terrorist financing

I2I1183Money laundering: exemptions for mixed-property transactions

1

The Proceeds of Crime Act 2002 is amended as follows.

2

In section 327 (concealing etc), after subsection (2E) (inserted by section 182) insert—

2F

A person (“P”) who does an act mentioned in paragraph (c), (d) or (e) of subsection (1) does not commit an offence under that subsection if—

a

P is carrying on business in the regulated sector,

b

P does the act in the course of that business, on behalf of a customer or client, in operating an account or accounts maintained with P or in connection with holding any property for the customer or client,

c

at the time of the act, P knows or suspects that part but not all of the funds in the account or accounts, or of the property so held, is criminal property (“the relevant criminal property”),

d

it is not possible, at the time the act takes place, to identify the part of the funds or property that is the relevant criminal property, and

e

the value of the funds in the account or accounts, or of the property so held, is not, as a direct or indirect result of the act, less than the value of the relevant criminal property at the time of the act.

2G

Where subsection (2F) applies—

a

if P does the act in operating an account or accounts, the funds in the account or accounts immediately after the act are assumed to include the relevant criminal property, and

b

if P does the act in connection with holding any property for the customer or client, such of that property as is held by P immediately after the act is assumed to include the relevant criminal property.

3

In section 328 (arrangements), after subsection (7) (inserted by section 182) insert—

8

A person (“P”) who does an act mentioned in subsection (1) does not commit an offence under that subsection if—

a

P is carrying on business in the regulated sector,

b

P does the act in the course of that business, on behalf of a customer or client, in operating an account or accounts maintained with P or in connection with holding any property for the customer or client,

c

at the time of the act, P knows or suspects that part but not all of the funds in the account or accounts, or of the property so held, is criminal property (“the relevant criminal property”),

d

it is not possible, at the time the act takes place, to identify the part of the funds or property that is the relevant criminal property, and

e

the value of the funds in the account or accounts, or of the property so held, is not, as a direct or indirect result of the act, less than the value of the relevant criminal property at the time of the act.

9

Where subsection (8) applies—

a

if P does the act in operating an account or accounts, the funds in the account or accounts immediately after the act are assumed to include the relevant criminal property, and

b

if P does the act in connection with holding any property for the customer or client, such of that property as is held by P immediately after the act is assumed to include the relevant criminal property.

4

In section 329 (acquisition, use and possession), after subsection (2E) (inserted by section 182), insert—

2F

A person (“P”) who does an act mentioned in subsection (1) does not commit an offence under that subsection if—

a

P is carrying on business in the regulated sector,

b

P does the act in the course of that business, on behalf of a customer or client, in operating an account or accounts maintained with P or in connection with holding any property for the customer or client,

c

at the time of the act, P knows or suspects that part but not all of the funds in the account or accounts, or of the property so held, is criminal property (“the relevant criminal property”),

d

it is not possible, at the time the act takes place, to identify the part of the funds or property that is the relevant criminal property, and

e

the value of the funds in the account or accounts, or of the property so held, is not, as a direct or indirect result of the act, less than the value of the relevant criminal property at the time of the act.

2G

Where subsection (2F) applies—

a

if P does the act in operating an account or accounts, the funds in the account or accounts immediately after the act are assumed to include the relevant criminal property, and

b

if P does the act in connection with holding any property for the customer or client, such of that property as is held by P immediately after the act is assumed to include the relevant criminal property.