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The Herald has recently reported (available here) that Celtic’s biggest shareholder Dermot Desmond is being called on to address concerns that a bank he holds a third of shares in, Latvia’s Rietumu Bank, is connected to money laundering and tax avoidance. The story, which comes hot off the heels of the Annual Report on the exercise of powers to search for and seize cash and realisable property under the Proceeds of Crime Act 2002 (available here), yet again highlights the ever increasing scrutiny of financial crime, both in the UK and abroad.
At Martin, Johnston & Socha, our specialist financial crime defence team have been defending clients against allegations of financial misconduct for many years. We closely follow all developments in this sophisticated and fast-moving area of law. In this blog, we provide a brief overview of the investigation of, and law on, money laundering in Scotland. If you need more information, please contact us as soon as possible.
Investigative and prosecuting authorities across the world are increasingly cooperating to identify money laundering. This international approach aims at preventing people and organisations from conducting cross-border financial misconduct. Closer to home, Police Scotland are gathering evidence and sharing intelligence aimed at tackling financial crime, particularly fraud.
For instance, Operation Thero focuses on links between money laundering and Scotland’s private rental sector, particularly in respect of mortgage fraud. The information it unearths about suspect landlords is often shared with local authorities who have the power to remove people from the landlord register. Such a cross-agency approach is becoming ever more common, arguably resulting in an increase of fraud prosecutions in Scotland.
Broadly, money laundering is the act of disguising money raised through illegal activities so that it appears genuine. It often arises following substantive allegations of fraud or other form of financial misconduct. Crucially, it can also result from a failure to adhere to anti-money laundering legislation and regulations. For instance, certain businesses (such as those involved in investment, banking, accountancy or the legal profession) are vulnerable to prosecution if they fail in their obligation to report to the authorities any customers or clients they suspect to be involved in money laundering.
Money laundering offences in the UK are therefore very wide, impact various different people and organisations, and seek to target all manner of financial misconduct. The sanctions that attach to a successful prosecution are also very severe, with the maximum penalty for the main money laundering offences (concealment (s. 327, POCA 2002), arrangements (s. 328) and acquisition, use and possession (s. 329)) amounting to 14 years’ imprisonment. It’s therefore vital to get specialist legal advice as soon as possible if you are concerned that you will be accused of a money laundering offence.
For specialist legal advice on defending against allegations of financial crime, or any other criminal matter, please contact our expert criminal defence lawyers today. We’re well-known for our experience navigating the criminal justice system and our thorough, technical and proactive approach, especially to complex money laundering cases.
