The UK Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007 require a report to be made to the police if a person knows or suspects that a client or any other person is engaged in money laundering or using or possessing the proceeds of crime.
An offence is committed when a person acquires, uses or has possession of property which he knows or suspects represents the proceeds of crime. Tax evasion is a criminal offence and thus unpaid tax can be considered the proceeds of crime.
Individuals in the UK regulated sector (e.g. accountants, tax advisors) commit a criminal offence if they fail to make a disclosure (a Suspicious Activity Report or SAR) in cases where they have knowledge or even a suspicion of the use or possession of proceeds of crime or that money laundering is occurring.
People who make an SAR are not even allowed to tell the person who is the subject of the report. The criminal offence of tipping off arises where a person in the regulated sector discloses that an investigation into allegations that a money laundering offence has been committed is being contemplated or is being carried out.
The reporting requirements do not apply to properly instructed legal representatives nor to professional advisors outside the British Isles. Click here for more information on confidentiality or contact us for further details.
