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Introduction
The UK's money laundering offences are set out in sections 327-329 of the Proceeds of Crime Act (POCA) 2002. Section 327 of POCA provides that it is an offence to conceal or disguise criminal property[1] . The terms "concealing" and "disguising" are not defined in POCA but section 327(3) provides that they include concealing or disguising the nature, source, location, disposition, movement, ownership or any rights with respect to criminal proceeds. This language is drawn from the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances[2] which required parties to criminalise the intentional "concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of property", knowing that such property was derived from certain drugs offences. The language was subsequently adopted in the 1990 Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime[3] which required parties to criminalise the intentional "concealment or disguise of the true nature, source, location, disposition, movement, right with respect to, or ownership of, property" knowing that such property was criminal proceeds.
It is perhaps surprising, given the number of jurisdictions, which have incorporated the language from these conventions into their own domestic legislation, that more foreign case law is not being cited before the UK courts in relation to the interpretation and proper application of these money laundering offences. This paper seeks to use case law from the USA, where there are frequent money laundering convictions, to throw light on the underlying concepts of the offence and to provide examples of activity which may amount to its commission.
The US legislation on money laundering is of assistance because it uses very similar language to that in POCA. Title 18 of the US code makes it an offence, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, to conduct or attempt to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity, knowing that the transaction is designed in whole or in part to conceal or disguise the nature, location, source, ownership or control of the proceeds[4] . In United States v. Majors [5] , the court said that...