ACCA AAA ^UK Syllabus A. Regulatory Environment - Money Laundering Basics - Notes ^{1 / 11}

In US law it is the practice of engaging in financial transactions to conceal the identity, source, or destination of illegally gained money.

In UK law the common law definition is wider. It is taking any action with property of any form which is either wholly or in part the proceeds of a crime that will disguise the fact that that property is the proceeds of a crime or obscure the beneficial ownership of said property.

It basically means any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting.

Money laundering is thus the process by which criminals attempt to conceal the true origin and ownership of the proceeds generated by illegal means, allowing them to maintain control over the proceeds and, ultimately, providing a legitimate cover for their sources of income.

The term is widely defined to include:

1. Possessing

2. Dealing with in any way

3. Concealing 

   .....the proceeds of any crime