Financial Crime - Money Laundering and Bribery Notes

Money laundering is the process of converting the proceeds of crime into assets that appear to have a legal source.
The aim is to disguise the illegal source of the property so the holder can enjoy it without suspicion.
Example: Drug dealers using a legitimate business to channel proceeds, then extracting profits as salary or dividends to buy luxurious items.

Proceeds of Crime Act 2002 (POCA): Primary legislation regulating money laundering.
- Three categories of offenses:
  - Laundering
  - Failure to Report
  - Tipping Off

Offense to conceal, disguise, convert, transfer, or remove criminal property from England, Wales, Scotland, or Northern Ireland.
- Concealing or disguising involves hiding the nature, source, or location of the property.
- Criminal property: Property the offender knows or suspects represents benefit from any criminal conduct.
Laundering typically involves three phases:
- Placement
- Layering
- Integration

Placement
- The initial disposal of the proceeds of crime into a legitimate business activity or property.
- Example: Depositing illegal cash into a takeaway business.
Layering
- Transferring money between businesses or places to conceal its initial source.
- Example: Transferring money between bank accounts to obscure the audit trail.
Integration
- The money takes on a legitimate appearance.
- Example: Withdrawing money from a bank account as a