Money Laundering - Revision

[Suze]

Money laundering is the process where illegal proceeds are converted into assets which appears to be legal.

Placement, Layering and integration are usually the 3 phases in the process.

The Proceeds of the Crime Act 2002 seeks to control money laundering by using three categories of criminal offences:

1. Laundering
2. failure to report
3. tipping off.

The penalties are a maximum 14 year (for money laundering) and/ or a fine; and 5 years (for failure to report and tipping off) and/ or a fine.

Did I leave out anything ?

[Suze]

I took this question from a past paper.

Boss is involved in illegal activity and makes lots of money.

Boss bought a business with the intention of passing off illegally gained money as profits from the shop so he employed a manager and an accountant who produces false F/S for the business.

Explain which criminal offenses each of the 3 individuals may have committed.

[Cubicile_blues]

We need to examine the facts of the case before we reach a conclusion. Please tell us the question paper in which this scenario based question appeared?

[John00]

The concept of money laundering can be explained as if someone steals large sums of cash from office funds without getting caught. he/she has to make large deposits into bank account. Computer program might notice the unusually large deposits, which can increase increasing the chances of getting caught. To launder the money, the criminal might simply use the cash to make purchases and then resell the items in market.The revenue gained from these sales is clean and the criminal is drawing less attention.