POCA Money Laundering Offences: Sections 327 to 330

The Proceeds of Crime Act 2002 (POCA) is the main source of criminal money laundering offences in the United Kingdom. Part 7 sets out three principal offences, in sections 327, 328 and 329, and a separate offence of failing to disclose in the regulated sector in section 330. This guide summarises those four sections as shown on legislation.gov.uk, including amendments the page records. It builds on our guides to suspicious activity reports and tipping off and to AML compliance changes for accountants.

Section 327: concealing

Section 327 makes it an offence to conceal, disguise, convert, transfer or remove criminal property from England and Wales, Scotland or Northern Ireland. Under section 327(3), concealing or disguising property includes hiding its nature, source, location, disposition, movement, ownership or any rights in it.

Section 328: arrangements

Section 328 makes it an offence to enter into, or become concerned in, an arrangement that the person knows or suspects facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person. The test is knowledge or suspicion, and the arrangement can facilitate the property being dealt with by any means.

Section 329: acquisition, use and possession

Section 329 makes it an offence to acquire, use or possess criminal property. It contains an adequate consideration defence: a person is not guilty if they acquired, used or had possession of the property for adequate consideration. Under section 329(3), consideration is inadequate if its value is significantly less than the value of the property or of its use or possession. The section also says that providing goods or services that the provider knows or suspects may help another person to commit criminal conduct does not count as consideration.

Defences shared by sections 327 to 329

The three principal offences share a common structure of defences. According to the page, a person has a defence where they make an authorised disclosure and, if the disclosure is made before the act, have appropriate consent. They also have a defence where they intended to make such a disclosure and had a reasonable excuse for not doing so, or where the act is done in performing an enforcement function under POCA or related legislation. In each section, a person does not commit an offence where they knew or reasonably believed that the underlying conduct occurred abroad, was lawful where it occurred, and is not of a prescribed category.

The sections also contain exemptions that the page attributes to later amendments. One, added by the Financial Services Act 2021 amendments recorded on the page, relates to deposit-taking bodies, electronic money institutions and payment institutions operating an account where the value of the criminal property is below a threshold in section 339A. Another, inserted by the Economic Crime and Corporate Transparency Act 2023, is an exit-payment exemption for regulated-sector firms that complied with customer due diligence where the amount is below a threshold, with a separate provision for mixed funds in accounts or held property where the criminal property cannot be identified. We did not read section 339A, so the threshold amounts are not covered here.

Section 330: failure to disclose in the regulated sector

Section 330 is different in kind, because it is aimed at people working in the regulated sector. The offence applies where a person knows or suspects, or has reasonable grounds to know or suspect, that another person is engaged in money laundering; the information came to them in the course of business in the regulated sector; they can identify the other person or the laundered property, or believe the information will or may help identify them; and they do not report it as soon as practicable to a nominated officer or a person authorised by the National Crime Agency's Director General. The "reasonable grounds" wording means the test is not purely subjective.

The defences in section 330(6) include a reasonable excuse for not disclosing, and the position of a professional legal adviser or relevant professional adviser acting in privileged circumstances. Section 330(7) provides a training defence where the person did not know or suspect money laundering and was not given the training required under an order. The page also records exemptions for assistants to privileged advisers, foreign money laundering, and information obtained only through certain immigration status checks. Section 330(8) requires courts to consider relevant guidance approved by the Treasury. Section 330(14) describes a relevant professional adviser as an accountant, auditor or tax adviser who belongs to a professional body that meets competence and ethics requirements.

Using this in an accountancy or compliance role: our suggestions

These steps are our suggestions, not requirements in the Act.

• Make sure every member of staff can explain the difference between suspicion and reasonable grounds to suspect, since section 330 uses both.
• Record training, because section 330(7) refers to it.
• Keep a clear route to the nominated officer, and note when a report was made, since the test is "as soon as practicable".
• Check the status of any privilege claim with legal advice before relying on it.

For structured learning, browse our CPD courses.

What we could not confirm

The legislation.gov.uk page we read reproduced sections 327 to 330, and section 330 was cut off after subsection 14. We did not read sections 331 to 336, section 333A on tipping off, section 334 on penalties, or section 340 on the definition of criminal property, so this post does not give penalties or that definition. We also did not read section 339A. Legislation changes, so check the current text on legislation.gov.uk. This post covers the United Kingdom offences only and is general information, not legal advice.