SOCPA's effect on anti-money laundering practices

The Serious Organised Crime and Police Act 2005 (SOCPA) impinges on several areas of the law, including amendments to the Protection from Harassment Act and a restriction on political protest for a kilometre around the Houses of Parliament, for which it is perhaps best known to the general public. Its importance to those working on anti-money laundering practices is to be found in Chapter 6, which deals with the proceeds of crime.

Sections within this chapter make amendments to the Proceeds of Crime Act 2002. These affect international activity, failing to report suspected money laundering activity to a designated money laundering reporting officer (MLRO), and the introduction of a threshold amount for deposit-taking bodies, under which value transfer of criminal property will not be considered a concealing offence.

The Law Society warns that the threshold amount has no effect on solicitors as they are not deposit taking bodies, but, for other professions within the Regulated sector, the value is set at £250, except where an authorised constable uses the powers provided by SOCPA to specify a different amount.

Provisions regarding international activity that may be considered illegal in the UK introduced by SOCPA allow for a limited defence in that the relevant conduct will not be considered as an offence if the overseas activity was not illegal in the time and place at which it occurred - with certain exceptions relating to the seriousness of criminality of the activity had it occurred in the UK.

The reporting of suspected money laundering activity is also developed under SOCPA. One amendment gives the professional making a report to his MLRO the assurance that doing so does not breach legal privilege. Another provides a defence to those who make no suspicious activity report, provided that they did not know the identity of the money launderer or the whereabouts of the laundered property, or that it was a reasonable belief that such knowledge or suspicion as the accused had (or should have had) would not have assisted in the establishment of these facts.

Professional training in anti-money laundering practices
SOCPA is but one of several laws that place serious and onerous responsibility on businesses within the Regulated sector, and future legislation is only likely to add to this duty. It is, therefore, important to ensure that your business is fully compliant with the provisions of UK money laundering laws.

ML Solutions 4U specialises in training courses, fully accredited as continuing professional development by the Law Society, to help businesses combat attempts to launder the proceeds of crime through their books. Each course can be tailored to your professional needs and level of expertise in the field, thus meeting the training obligation imposed by section 21 of the Money Laundering Regulations.

Should you wish to discuss your business' needs regarding anti-money laundering practices, please contact ML Solutions 4U through the online contact form, or simply call us on 0845 402 0001.

Money Laundering Information » SOCPA and Anti-money Laundering Practices