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Money Laundering (Sections 327-329 Proceeds of Crime Act 2002)

Proceeds of Crime Act 2002, ss.327 to 329

  • Either way
  • 14 years' custody

Definition

A person commits an offence if he (a) conceals criminal property; (b) disguises criminal property; (c) converts criminal property; (d) transfers criminal property; (e) removes criminal property from England and Wales or from Scotland or from Northern Ireland. (Proceeds of Crime Act 2002, s.327(1)) A person commits an offence if he enters into or becomes concerned in an arrangement which he knows or suspects facilitates (by whatever means) the acquisition, retention, use or control of criminal property by or on behalf of another person. (Proceeds of Crime Act 2002, s.328(1)) A person commits an offence if he (a) acquires criminal property; (b) uses criminal property; (c) has possession of criminal property. (Proceeds of Crime Act 2002, s.329(1))

Points to prove

  1. A person
  2. conceals, disguises, converts or transfers criminal property, or removes it from England and Wales, Scotland or Northern Ireland (s.327(1))
  3. or enters into or becomes concerned in an arrangement which he knows or suspects facilitates, by whatever means, the acquisition, retention, use or control of criminal property by or on behalf of another person (s.328(1))
  4. or acquires, uses or has possession of criminal property (s.329(1))
  5. and none of the exceptions in s.327(2) to (2G), s.328(2) to (9) or s.329(2) to (2G) applies, including an authorised disclosure under s.338 with the appropriate consent, or (for s.329) acquisition, use or possession for adequate consideration

Money Laundering comprises three offences under Part 7 Proceeds of Crime Act 2002. A person commits an offence if he conceals, disguises, converts or transfers criminal property, or removes it from England and Wales or from Scotland or from Northern Ireland (s.327(1)); concealing or disguising includes concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it (s.327(3)). A person commits an offence if he enters into or becomes concerned in an arrangement which he knows or suspects facilitates, by whatever means, the acquisition, retention, use or control of criminal property by or on behalf of another person (s.328(1)). A person commits an offence if he acquires, uses or has possession of criminal property (s.329(1)). Each section provides that no offence is committed where the person makes an authorised disclosure under s.338 with the appropriate consent, intended to and had a reasonable excuse for not doing so, or acts in carrying out an enforcement function, and s.329(2)(c) adds acquisition, use or possession for adequate consideration; further exceptions apply to deposit-taking bodies and the regulated sector. Maximum sentence for each offence: on conviction on indictment, imprisonment for a term not exceeding 14 years, a fine or both; on summary conviction, imprisonment for a term not exceeding six months, a fine not exceeding the statutory maximum or both (s.334(1)).

In practice

This is an either-way offence: it may be tried at the magistrates' court or the Crown Court. Mode of trial depends on the seriousness and the defendant's election. The suspect must be cautioned in accordance with Code C PACE 1984 before any questions about the offence are put to them. Interviews must be audio-recorded (Code E) or, for indictable offences, may be visually recorded (Code F).

Last updated 20 October 2026. Reviewed 20 October 2026