Court of Appeal judgement in World Uyghur Congress v NCA and others [2024] EWCA Civ 715.
Importance
The decision shows the limits of the ‘adequate consideration’ exemption from criminal liability for money laundering under section 329 of the Proceeds of Crime Act 2002.
Decision
Appeal Allowed
It was held that adequate consideration exemption exempts a person from the offence under section 329(1) only if they have the property in their possession. However, further transfer with knowledge or suspicion of its comping of criminal property could give rise to an offence under section 327.
The court did not address what adequate means. However, it was agreed that the adequate consideration defence applies to market value transactions, and prosecution will be required to prove items purchased for consideration that are not adequate.
Takeaway
Companies need to carefully examine supply chains to avoid risking criminal investigations under the Proceeds of Crime Act 2002.
Guidance
Current guidance for the ‘adequate consideration’ exemption can be found in The Legal Sector Affinity Group anti-money laundering guidance for the legal sector. This can be downloaded online.
Law Society Action
The Law Society is working with its expert Economic Crime Task Force to determine the potential implications for the legal sector and clients
The contents of this post do not constitute legal advice and are provided for general information purposes only.
Associated photo designed by Freepik.
The contents of this post do not constitute legal advice and are provided for general information purposes only ■
