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Dave Spart

Money Laundering - Induction Course

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This post is for reference.

I've recently started a contract working for an insurance company (actuary). Part of their procedures requires new staff to take induction courses, one of which is a course on Money Laundering. Fraud is mentioned on this forum more often than not, so I thought I'd take the opportunity to docuemtn the arrangements for countering money laundering in the UK:

1993 Criminal Justice Act first act to recognise money laundering.

2002 Proceeds of Crime Act (POCA) defines three offences: launderin, failure to report and tipping off.

  • Prohibits all financial services firms and their employees from assisting anyone to launder the proceeds of any criminal activity.
  • Obliges them to report any evidence of money laundering
  • Prohibits them from tipping off persons under investigation for money laundering.

2003 Money Laundering Regulations require finanical insitutions to obtain evidence of cutomer identity, keep records, recognise and report any suspicions. Negligence in implementing these systems is a criminal offence.

2005 Serious and Organised Crime and Police Act provided for the setting up of the Serious Organised Crime Agency, dubbed Britain's FBI.

2007 Money Laundering Regulations:

(1) Greater requirements for Customer Due Diligence

(2) Permission to rely on certain third party firms to undertake customer identification.

Terrorism Act and the Anti-Terrorism, Crime and Security Act 2001 targets terrorist financing using the same approach as the POCA:

  • Prohibits all financial services firms and their employees from assisting anyone to launder the proceeds of any criminal activity.
  • Obliges them to report any evidence of money laundering
  • Prohibits them from tipping off persons under investigation for money laundering.

There is also an EU wide anti-money laundering and terrorist financing legislation, the third directive was implemented on 15 Dec 2007.

Apparently over £1trillion is laundered every year, close to the GDP to some of the large industrialised european economies.

Don't know about you, but it strikes me that one of the easiest ways to launder money is through the buying and selling of property. Given the extraordinarily lax ways that banks screened their customers during the boom, one can only recoil in horror at the staggering sums of money the banks may have allowed to be laundered, on top of their own highly questionable lending to BTLers, Loan Liars and the financially incompetant.

"Row upon row of castles in Spain make up a fools paradise"

Hooverville, The Christians.

Edited by Dave Spart

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Its all bull shit and it keeps you in a job.

I have a purchase going through TMW, they emailed me to ask for proof of deposit.

you can download the form on line

http://www.themortgageworks.co.uk/includes/pdf/T392_v2.pdf

I asked them if they need to see a bank statement or any other paperwork, they said just complete the form and send a hard copy, because a fax will not do :lol:

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Its all bull shit and it keeps you in a job.

I have a purchase going through TMW, they emailed me to ask for proof of deposit.

you can download the form on line

http://www.themortgageworks.co.uk/includes/pdf/T392_v2.pdf

I asked them if they need to see a bank statement or any other paperwork, they said just complete the form and send a hard copy, because a fax will not do :lol:

The point of my post is that despite all these measures being place vast numbers of people committed fraud to get ahead in the property boom, though most of them will have committed the offences of false declaration, false representation, failing to disclose information and obtaining services by deception.

Edited by Dave Spart

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This post is for reference.

I've recently started a contract for a insurance company. Part of their procedures require new staff to take induction courses, one of which is a course on Money Laundering. Given the extent of fraud that';s taken place over the last

For the record here's a summary of how the course describes arrangements for countering money laundering in the UK:

1993 Criminal Justice Act first act to recognise money laundering.

2002 Proceeds of Crime Act (POCA) defines three offences: launderin, failure to report and tipping off.

  • Prohibits all financial services firms and their employees from assisting anyone to launder the proceeds of any criminal activity.

  • Obliges them to report any evidence of money laundering

  • Prohibits them from tipping off persons under investigation for money laundering.

2003 Money Laundering Regulations require finanical insitutions to obtain evidence of cutomer identity, keep records, recognise and report any suspicions. Negligence in implementing these systems is a criminal offence.

2005 Serious and Organised Crime and Police Act provided for the setting up of the Serious Organised Crime Agency, dubbed Britain's FBI.

2007 Money Laundering Regulations:

(1) Greater requirements for Customer Due Diligence

(2) Permission to rely on certain third party firms to undertake customer identification.

Terrorism Act and the Anti-Terrorism, Crime and Security Act 2001 targets terrorist financing using the same approach as the POCA:

  • Prohibits all financial services firms and their employees from assisting anyone to launder the proceeds of any criminal activity.

  • Obliges them to report any evidence of money laundering

  • Prohibits them from tipping off persons under investigation for money laundering.

There is also an EU wide anti-money laundering and terrorist financing legislation, the third directive was implemented on 15 Dec 2007.

Apparently over £1trillion is laundered every year, close to the GDP to some of the large industrialised european economies.

Don't know about you, but it strikes me that one of the easiest ways to launder money is through the buying and selling of property. Given the extraordinarily lax ways that banks screened their customers during the boom, one can only recoil in horror at the staggering sums of money the banks may have allowed to be laundered, on top of their own highly questionable lending to BTLers, Loan Liars and the financially incompetant.

"Row upon row of castles in Spain make up a fools paradise"

Hooverville, The Christians.

I would have thought that the process of buying a house would be difficult to use for money laundering. I doubt if you can buy a house with cash.

But once you have a house, you can appear to rent it out and add the cash into the payments. That would be a good way to clean your money.

I think that a lot of the drive towards electronic money, is to do with money laundering. Once all money becomes electronic, getting the proceeds of economic crime into the system becomes a lot trickier, as it leaves an electronic record. Which is why criminals talk about being monitored all the time under the guise of threats to civil liberties.

AFAIAC, bring on Electronic money.

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I would have thought that the process of buying a house would be difficult to use for money laundering. I doubt if you can buy a house with cash.

There's several steps to laundering money. The first is placement - putting the dirty money into say a bank account. Then there's layering where the money is used to buy and sell different assets. The final step is integration where the money finally emerges from the system laundered.

I am sure you probably could buy a house with cash (but the seller might have concerns over dodgy notes), but once the money has been placed in the bank you can the use the layering step to buy and sell property with apparent legitimacy.

For instance how many Range-Rovered drug dealers must have depositted their ill-gotten gains with their banks and bought s*****y new designer apartments?

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There's several steps to laundering money. The first is placement - putting the dirty money into say a bank account. Then there's layering where the money is used to buy and sell different assets. The final step is integration where the money finally emerges from the system laundered.

I am sure you probably could buy a house with cash (but the seller might have concerns over dodgy notes), but once the money has been placed in the bank you can the use the layering step to buy and sell property with apparent legitimacy.

For instance how many Range-Rovered drug dealers must have depositted their ill-gotten gains with their banks and bought s*****y new designer apartments?

... in Dubai

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Its all bull shit and it keeps you in a job.

I have a purchase going through TMW, they emailed me to ask for proof of deposit.

you can download the form on line

http://www.themortga...pdf/T392_v2.pdf

I asked them if they need to see a bank statement or any other paperwork, they said just complete the form and send a hard copy, because a fax will not do :lol:

It sounds more like covering themselves against liar-loans/mortgage-fraud, than anti-money-laundering, to me. They probably brought it in after Peter Mandelson's little mortgage peccadillo :)

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I doubt if you can buy a house with cash.

i bought a house/land in cash

the solicitor was all worried about where it came from :P

i suppose if you want to launder money with property,

buy a site and build on it, paying the builders in cash (they only be too happy) or mostly cash (get to avoid Revenue as added bonus), even better if you are a builder yourself :D

Edited by yelims

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i bought a house/land in cash

the solicitor was all worried about where it came from :P

i suppose if you want to launder money with property,

buy a site and build on it, paying the builders in cash (they only be too happy) or mostly cash (get to avoid Revenue as added bonus), even better if you are a builder yourself :D

Just to prove me wrong. The problem with buying something with so much cash is, that this gives the person you give it to a problem with regards to where that money came from.

When they go to the bank, they can say they got it for selling the house, but that information then can get passed to the authorities, and there is a trail back to the original purchaser.

I think solicitors are supposed to be bound by this money laundering act too. So you would need a dodgy one to be able to carry out the transaction in cash. I bet most reputable ones wont touch it. The dodgy ones will add on a fee of course.

I am of course wondering how you came across so much cash legally, to be able to buy a house in the first place? I find it difficult to think how this could be done in the UK at least, you would need a lot of receipts and tax returns to make all that cash legit here.

I know you are from Ireland of course. If the property crash continues there, maybe UK nationals will be across the water buying up bargains there for, literally, loose change. Cant see a bottom to it in Ireland.

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The point of my post is that despite all these measures being place vast numbers of people committed fraud to get ahead in the property boom, though most of them will have committed the offences of false declaration, false representation, failing to disclose information and obtaining services by deception.

The 'Occult twist' to these instructions is the Financial community - the banks, their CEO's, their shareholders, their Directors+Managers, Govt, regulators, elites etc

participated in the biggest fraud/heist against the population, in the history of finance.

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Just to prove me wrong. The problem with buying something with so much cash is, that this gives the person you give it to a problem with regards to where that money came from.

When they go to the bank, they can say they got it for selling the house, but that information then can get passed to the authorities, and there is a trail back to the original purchaser.

I think solicitors are supposed to be bound by this money laundering act too. So you would need a dodgy one to be able to carry out the transaction in cash. I bet most reputable ones wont touch it. The dodgy ones will add on a fee of course.

I am of course wondering how you came across so much cash legally, to be able to buy a house in the first place? I find it difficult to think how this could be done in the UK at least, you would need a lot of receipts and tax returns to make all that cash legit here.

I know you are from Ireland of course. If the property crash continues there, maybe UK nationals will be across the water buying up bargains there for, literally, loose change. Cant see a bottom to it in Ireland.

of course

the solicitor was concerned and that his job

but i had all the records and the money is clean and i paid quite a bit of taxes over last decade saving for this :( :angry: :blink:

anyways on bright site this gives you more of a bargaining position with seller since it might mean a faster sale and no raised hopes if mortgage is refused,etc

buying in cash a fully completed house would have too much of a trail and we would be talking about 6 digit figures, eyebrows would be raised of course, not to mention all transactions here have stamp duty and recorded with Revenue

now buying land (2-3 dozen thousand euro for an acre with full planning permission)

and then paying the contractors lets say 50% cash - 50% cheque/draft etc (they might have to justify to Revenue what they did with materials so some money would have to be clean) to build a house on it, and then sell it on later on, could theoretically be a way of laundering money

Edited by yelims

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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