ABSTRACT
Money laundering can be defined as the process utilised by criminals to disguise or convert the proceeds of crime (dirty money) into clean money. In this sense, the term ‘criminal’ can include drug dealers, burglars, fraudsters, people traffickers, smugglers, terrorists, extortionists, tax evaders and illegal arms dealers, but can also include lawyers, accountants, financial experts and many other intermediaries. The laundering of money is usually achieved by placing it into the financial system where it can be transferred between different financial products and bank accounts. 1 Because of the extent and threat of the problem, the United Kingdom (UK) has adopted an aggressive policy towards the offence and is an integral member of the global battle against money laundering. The primary focus of this chapter will therefore be to cover the UK’s anti-money laundering initiatives, including also an attempt at quantifying the extent of the problem. The chapter will then consider the background to the policy of criminalising and regulating money laundering, plus an evaluation of the financial institutions and regulatory bodies involved. Finally, we look at how dirty money is recovered, including a brief analysis of sentencing options and practices.
