It is an offence to launder your own ill-gotten gains, but you can also be prosecuted for knowingly helping manage another person’s dirty money. An offence only occurs if the cash can be identified as the proceeds of a crime; for example corruption, bribery, theft, drug dealing or even tax evasion.

In practice, laundering usually involves injecting cash gained through these kinds of activities into the legitimate financial system, in a way which disguises its origins, so that the money appears to come from a clean source.

In the UK, the offence carries a maximum prison term of 13 years. The main legislation governing money laundering is the Proceeds of Crime Act 2002.

The longest sentences are reserved for complex schemes, which involve abuse of trust and power, pressuring others into helping, and a long and close relationship between the money handler and the criminal.

Full article is available following the link. Original source: Juliette Garside; The Guardian

Follow the link to find scholarly insight on corporate governance & fraud.