Banking and Finance Assignment

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Running head: BANKING AND FINANCE LAW
BANKING AND FINANCE LAW
Name of the student:
Name of the university:
Author’s note:

BANKING AND FINANCE LAW1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Financial crime............................................................................................................................3
Money laundering as a financial crime in the UK.......................................................................4
Legislations in the UK to protect money laundering...................................................................5
Effect of the Proceeds of Crimes Act 2002 in preventing money laundering.........................6
Defences of the main money laundering offences...................................................................7
Sentencing guidelines for the offence of money laundering...................................................8
The Sanctions and Anti-Money Laundering Act 2018 and money laundering...........................9
Power purposes......................................................................................................................10
The possibilities of such expanded reporting responsibilities...............................................11
Heavier penalties...................................................................................................................11
Effeteness of this Act.............................................................................................................12
The Serious Crimes Act 2015 and money laundering...............................................................13
Impact of the Serious Crimes Act 2015.................................................................................13
Loopholes of the Serious Crimes Act 2015...........................................................................14
Conclusion.....................................................................................................................................15
Bibliography..................................................................................................................................16

BANKING AND FINANCE LAW2
Introduction
The term financial crime is one of the crimes, which has been committed against any
property and involved an unlawful conversion over the lawful ownership of other’s property.1
The financial crime in a country may encompass fraud in credit cards, cheque, mortgaged
property, corporate sector, medical, securities, bank, insurance sectors, and many others. It has
also included confidence and scam tricks, bribery, tax evasion, sedition, identity theft,
embezzlement, money laundering, counterfeiting, forgery, and many other financial purposes.
Money laundering is one of the unlawful processes of obscuring the roots of money obtained
illegitimately by transitory it through any complex arrangement of a commercial transaction or
banking transfers.2 As a consequence of this process, money has been returned to such a
launderer in any indirect and obscure way. There are various regulations to prevent money
laundering in the financial system of the UK, as well as detecting and preventing financial crime.
The business should be covered by such anti-money laundering, as well as terrorist funding
regulations or legislations for preventing such financial crime. The government of the UK has
enacted anti-money laundering legislation such as Terrorist Act 20003, Anti-terrorism, Crime and
1 Masciandaro, Donato, ed. Global financial crime: terrorism, money laundering and offshore
centres. (Taylor & Francis, 2017).
2 Harrison, Karen, and Nicholas Ryder. The law relating to financial crime in the United
Kingdom. (Taylor & Francis, 2016).
3 Terrorist Act 2000

BANKING AND FINANCE LAW3
Security Act 20014, Proceeds of Crime Act 20025, the Serious Crime and Police Act 20056, and
Serious Crime Act 20157 to prevent such financial crimes and protect illegal funding to the
terrorists. The Sanctions and Anti-Money laundering Act 2018, has not been in force till now;
however, it will provide a wider power to the government for implementing sanctions, which
includes trade sanctions, financial sanctions, as well as immigration sanctions. The UK is one of
the powerful members of the United Nations, for which this state should be more concerned
regarding money laundering as it a shame of a country that its people are involved in such illegal
activities. As the UK is an associate of the UN; therefore, this country has been required for
implementing sanctions, which are passed through a resolution of the Security Council of the
UK. This paper aims to discuss the impact of recent regulatory approaches to prevent and control
financial crimes, especially the crime of money laundering in the UK.
Discussion
Financial crime
Financial crime is an offence where a person or a group of persons has been involved in
the transaction of any fraud or misrepresentation of money. It is one of the forms of larceny or
theft that has occurred when a legal entity or an individual has taken property or money and used
those illegally or illegitimately with a mala fide intention of gaining a benefit from such
property.8 These types of crimes have been involved in various forms of subterfuge, deceit, or
abusing a position of confidence and mutual trust, which has been distinguished from any other
4 Anti-terrorism, Crime and Security Act 2001
5 Proceeds of Crime Act 2002
6 Serious Crime and Police Act 2005
7 Serious Crime Act 2015
8 Palmer, Axel. Countering Economic Crime: A Comparative Analysis. (Routledge, 2017).