The Proceeds of Crime Act 2002 (POCA) is one of the most important pieces of legislation in the UK relating to financial crime. It covers money laundering, recovery of criminal property, and reporting obligations for banks and other regulated businesses.
Although a CIFAS marker is not the same as a money laundering conviction, many Misuse of Facility and money mule cases that lead to markers are directly linked to POCA.
What is Money Laundering? #
Under POCA, money laundering is broadly defined as the process of concealing, disguising, converting, transferring, or removing criminal property.
Criminal property means any money or assets that represent the benefit of criminal conduct, if the person dealing with it knows or suspects its criminal origin.
This definition is wide enough to include everyday banking situations where customers allow their accounts to be used by others.
The Three Main Money Laundering Offences (Sections 327–329 POCA) #
- Concealing, Disguising, Converting or Transferring Criminal Property (s.327)
- Example: Moving stolen funds through different accounts.
- Arrangements to Facilitate the Use of Criminal Property (s.328)
- Example: Acting as an intermediary or helping others move fraudulent funds.
- Acquisition, Use or Possession of Criminal Property (s.329)
- Example: Spending money you know, or suspect, comes from fraud.
Each offence can carry up to 14 years in prison.
Money Mules and CIFAS Markers #
A growing number of CIFAS markers are linked to “money mule” activity — where individuals allow their bank accounts to be used to move criminal funds.
- In many cases, people are tricked into acting as mules, particularly younger account holders.
- CIFAS members will file a Misuse of Facility marker if they believe an account has been knowingly used in this way.
- However, under both POCA and CIFAS rules, there must be evidence of knowledge or suspicion. Innocent parties should not be penalised.
Reporting Obligations for Banks #
Under POCA, banks and other financial institutions are required to:
- Report suspicious activity via a Suspicious Activity Report (SAR).
- Stop or freeze transactions they believe may be linked to money laundering.
- Share fraud intelligence through CIFAS, provided it complies with data protection law.
Why This Matters for CIFAS Markers #
The wide scope of POCA means that innocent people can sometimes be caught up in investigations. For example:
- Allowing someone else to use your account without realising their money is fraudulent.
- Receiving funds under false pretences (e.g. a scam disguised as legitimate work).
If a marker is applied in these circumstances without clear, relevant, and rigorous evidence that you knew or suspected the funds were criminal, the marker may be unfair and open to challenge.
