First time offence for money laundering – what you need to know

The way that we handle money in our society is tightly regulated by a range of different institutions. When those institutions are manipulated in a certain way, often with the goal of hiding the origins of a sum of money, those responsible for these manipulations may find themselves guilty of money laundering.

Money laundering is a serious crime to find yourself accused of, and it carries with it a range of incredibly serious legal repercussions. Here, we try to clear up some of the pressing concerns that you’ll likely have as a potential first-time offender, from a legal analysis of the crime itself, to the kind of sentence you might be facing. 

If you’ve been charged with money laundering, or believe that you may face charges in the near future, you must seek specialised legal assistance from a criminal defence solicitor at the earliest opportunity available.

 

Money laundering defined

The offence of money laundering is covered by both the Proceeds of Crime Act 2002 and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The act defines money laundering in a number of ways, including: 

• Acquiring, possessing, or using criminal property.
• Concealing, converting, transferring or otherwise disguising criminal property.
• Entering into another arrangement concerning criminal property.

Essentially, it covers the attempt by an individual or other party to turn ‘dirty’ or illegal money or assets into assets that appear to have come from legal avenues.

Money laundering is thus normally connected, directly or indirectly, to other criminal activities including the drug trade and human trafficking. 

Clearly, the scope for potential criminal activity covered by the definitions above is exceptionally broad, as is the potential for overlap with other criminal offences. This is one of the reasons why you’ll need to engage a criminal defence solicitor who has extensive experience in dealing with money laundering-related cases.

 

Stages of money laundering

Money laundering is often divided into three distinct stages:

1. Placement: this initial stage is when the illegal or ‘dirty’ money is disguised, generally by being integrated into a legitimate financial system like an off-shore bank account.
2. Layering: during this stage, the money will be moved through a complicated series of transactions. The aim of this process is to make it practically impossible to track the funds, so that the authorities will have a hard time working out where the money actually originated from.
3. Integration: at this final stage, the money will be put back into the ‘normal’ economy, potentially through a relatively normal transaction. The ‘dirty’ money now appears clean, and it can be used to facilitate normal financial transactions.

This general structure can be applied to a wide range of different situations. The conspiracy will likely involve a number of different parties, including accountants, company directors, people in the financial sector, and potentially even lawyers as well.

 

Sentencing for first offence of money laundering 

It’s often difficult to understand just how serious money laundering cases are until you learn the sentencing guidelines. If convicted under the Proceeds of Crime Act 2002, you could be facing a maximum of 14 years in prison, with an offence range of between a band B fine and thirteen years in prison.

Even if it’s your first-time offence, it is possible that you could end up receiving a serious custodial sentence. Whether or not this is the case will depend on a range of different impacting factors.

Impacting factors

If you’re found guilty, the sentencing process will take into account two main considerations – culpability and harm.

Culpability

Those who carry out a leading role in a group activity (which money laundering normally is) that involves a complex, ongoing period of criminality will likely find themselves in a high culpability band. 

On the other hand, those who were only involved because they were coerced into doing so, or who had limited involvement overall and were not motivated by personal gain will likely be placed in a lesser culpability band.

Harm

In money laundering cases, harm assessment is often broken up into two different categories. 

The first is based on value. Cases involving over £10 million or more will be in the highest category, while those involving less than £10,000 will be in the lowest category.

The second is based on the criminal activity that generated the ‘dirty’ money in the first place. If that activity itself involved a high degree of harm, such as in human trafficking cases, then that would also carry over to a certain degree to the money laundering offence as well.

 

Defence Against Money Laundering (DAML)

If an individual suspects that they’re dealing with the proceeds of crime, they can request a DAML. This is essentially a pre-emptive measure that can be taken to ensure that they don’t become guilty of committing a money laundering offence.

This request won’t always be applicable, and it won’t always be accepted. However, in cases where the individual in question can show that they genuinely didn’t know that they were initially aware of the criminal origins, it will likely be accepted.

 

Seeking legal assistance

Money laundering offences are incredibly complicated, and developing an effective defence can take a significant amount of time. As a result, it’s in your best interest to seek legal assistance as soon as possible, so that you and your legal team can get to work. Your criminal defence solicitor will be able to:

• Provide you with advice before and during any interviews under caution you need to attend.
• Help you to develop the best defence possible given your situation, arranging for your representation in court if necessary.
• Ensure that you’re treated by the law in a just and fair manner at all times by the legal process.
• Help you to make an appeal if necessary.

It’s crucial that you pick a solicitor with experience in similar cases to yours. They’ll be able to leverage that experience in your case as well, identifying potential defences that other solicitors might not see.