Proceeds of Crime Act 2002 (POCA), as amended
- Issuing authority
- UK Parliament
- Effective date
- 2002 amended repeatedly, most recently by ECCT Act 2023
- Scope
- United Kingdom
Key requirements
The UK's main law for fighting money laundering. Creates three ML offences: hiding the proceeds of crime (concealment), helping move them (arrangement) and acquiring or using them. Also creates the duty to report suspicions through SARs, the tipping-off offence (don't warn your customer they're being reported) and the 'failure to disclose' offence for regulated sector employees.
Quick Summary
The Proceeds of Crime Act 2002 (POCA) is the UK's main law for tackling money laundering and recovering the proceeds of crime. It creates the main money laundering offences, requires people working in the regulated sector to report suspicious activity in certain circumstances, and gives law enforcement agencies powers to investigate, freeze, confiscate, and recover criminal assets.
What is it?
It makes it a criminal offence to deal with money or property that comes from criminal activity and sets out how suspicious activity should be reported. It also gives authorities powers to trace, seize, and recover criminal assets.
Who does it apply to?
- Anyone dealing with criminal property in the UK
- Businesses in the regulated sector
- Banks
- Lawyers
- Accountants
- Estate agents
- Cryptoasset businesses
- Other firms with reporting obligations under POCA
Why does it matter?
POCA is an important financial crime law in the UK. It doesn't just target criminals. It also places legal responsibilities on businesses and individuals working in the regulated sector to report suspected money laundering and avoid helping criminals, even unintentionally.
What should firms do?
- Put effective AML controls in place to detect and prevent money laundering.
- Train staff to recognise and report suspicious activity.
- Submit Suspicious Activity Reports (SARs) where required.
- Avoid tipping off customers that a SAR has been submitted or that an investigation may take place.
- Keep appropriate records to support AML decisions and investigations.
- Review internal AML procedures regularly to ensure they remain effective.
AboutAML Breakdown
One of its most important features is the Suspicious Activity Report (SAR). If someone working in the regulated sector knows or suspects that money laundering is taking place, they may have a legal duty to report it to the National Crime Agency (NCA). The Act also makes it a criminal offence to tip off a customer by telling them that a SAR has been submitted or that a money laundering investigation may be taking place. This helps protect investigations and prevents criminals from moving or hiding their assets. Another key feature of POCA is that it gives law enforcement agencies broad powers to recover criminal property. These powers allow authorities to confiscate assets after a conviction and, in some circumstances, recover property through civil proceedings even where there has not been a criminal conviction.