Proceeds of crime news 11/11/2009 FSA wins money laundering prosecution rights

An important legal dispute in the High Court has confirmed that the Financial Services Authority (FSA) can prosecute criminals under the Proceeds of Crime Act (POCA) 2002.

Lawyers for two men who were accused of money laundering, insider dealing, running an alleged boiler room and laundering of the proceeds said that the FSA only had powers to prosecute criminality under sections 401 and 402 of the Financial Services and Markets Act (FSMA) 2000.

They said criminal prosecutions under sections 327 and 328 of the Proceeds of Crime Act 2002 were beyond the FSAs remit.

However, the Court of Appeals judgement said that although section 1 of the Act set out functions of the FSA, it did not limit the FSA to those and it made practical sense that the FSA should be able to prosecute other offences which formed part of the same criminality as offences that it had express power to prosecute under the Proceeds of Crime Act 2002.

News « Proceeds of crime news - High Court confirms FSA prosecution role

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