The Three Principal Offences
Section 327 (concealing criminal property) covers concealing, disguising, converting, transferring, or removing criminal property — maximum 14 years. Section 328 (arranging) covers entering into, or becoming concerned in, an arrangement facilitating the acquisition, retention, use, or control of criminal property by another — maximum 14 years. Section 329 (acquisition, use or possession) covers simply possessing or using property that a person knows or suspects represents the proceeds of crime — maximum 14 years. A defence is available to s.329 where the property was acquired for adequate consideration at market value.
| Offence | Section | Maximum |
|---|---|---|
| Concealing criminal property | s.327 POCA | 14 years |
| Arranging a money laundering transaction | s.328 POCA | 14 years |
| Acquiring / using / possessing criminal property | s.329 POCA | 14 years |
| Failure to disclose (regulated sector) | s.330 POCA | 5 years |
| Tipping off | s.333A POCA | 2 years |
What Constitutes Criminal Property?
The prosecution must prove that the assets in question are criminal property — property constituting a person's benefit from criminal conduct — where the defendant knows or suspects that to be the case. The prosecution is not always required to identify the specific predicate crime. It is sufficient to establish that the property could not have come from a legitimate source. A robust paper trail demonstrating the legitimate origin of funds is central to the defence.
The Regulated Sector and Failure to Report
Those in the regulated sector — including banking, legal services, accounting, and estate agency — are subject to more onerous obligations. Under section 330 of POCA, it is a criminal offence to fail to disclose knowledge or suspicion of money laundering to an MLRO or directly to the NCA via a Suspicious Activity Report. The negligence test applies: a professional can be guilty even if they were genuinely unaware of the suspicious activity.
POCA Civil Powers and Asset Restraint
Independently of any criminal charge, the authorities can apply for a Restraint Order to freeze assets at the outset of an investigation — granted on short notice without the subject being informed. It can cover assets held in the subject's name as well as assets held by associates or in corporate structures. Where a criminal conviction follows, the court makes a confiscation order based on the defendant's total benefit from criminal conduct — which can extend to the total value of assets held, not merely those directly connected to the specific offending.
What to Do if You Are Under Investigation
If you are arrested, have had accounts frozen, or are under investigation for money laundering, seek specialist legal advice immediately. Do not speak to investigators without a solicitor present. The breadth of POCA, combined with the civil asset seizure powers available, makes early specialist intervention essential in every case.