Understanding Money Laundering Key Stages and Red Flags.pdf

This presentation provides a clear overview of money laundering, outlining the key stages involved—placement, layering, and integration. It highlights the main offences under the Proceeds of Crime Act 2002, including concealing or facilitating criminal property and the penalties for failing to report or tipping off. The presentation also identifies critical red flags to watch out for, such as unusual transactions and difficulty verifying client identity, empowering financial teams to detect and respond effectively to suspicious activities.

1. Introduction to
Money
Laundering
Definition: Concealing the origins of
illicitly-derived property or funds to
make them appear legitimate.
Criminal sophistication: Money
launderers adapt quickly to stricter
regulations and diversify across financial
sectors.
UNODC estimate: In 2009, $1.6 trillion
was laundered globally.

2. The Three Stages
of Money
Laundering
Placement: Introducing illegal proceeds
into the financial system (e.g.,
depositing into a bank).
Layering: Moving the money through
multiple transactions to obscure its
origin.
Integration: The money re-enters the
economy appearing legitimate.

3. Money Laundering
Offences
Principal Offences:
Concealing, transferring, or using criminal property.
Facilitating the acquisition or control of criminal property.
Acquiring or possessing criminal property.
Failure to Report: Not reporting suspected money
laundering.
Tipping Off: Disclosing information that could prejudice an
investigation.

4. Difficulty in verifying client identity.
Unnecessary establishment of overseas subsidiaries.
Transactions inconsistent with known business or personal
activities.
Structured transactions to evade reporting requirements.
Large, rounded-off cash transactions (e.g., £9,900).
Use of intermediaries for no apparent business reason.
Red Flags
of Money
Laundering

5. Conclusion and
Next Steps
Importance of recognizing red
flags and reporting suspicious
activities.
Reach out for further guidance or
download the financial crime
guide.
Contact details for further
inquiries.

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