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Entering into a money laundering arrangement

s.328Proceeds of Crime Act 2002

Entering into or becoming concerned in an arrangement that you know or suspect helps another person to acquire, keep, use or control criminal property.

Entering into a money laundering arrangement · Proceeds of Crime Act 2002, s.328Card 28 / 195

Points to prove

Entered into or became concerned in an arrangement
Which they knew or suspected facilitated (by whatever means)
The acquisition, retention, use or control of criminal property
By or on behalf of another person

Key definitions

Arrangement – not defined in the Act. It takes its ordinary meaning and needs no formal agreement. Letting someone else’s money pass through your bank account is a typical example.
Criminal property – s.340(3): property that is, or represents (in whole or part, directly or indirectly), a person’s benefit from criminal conduct, where the alleged offender knows or suspects that.
Criminal conduct – s.340(2): conduct that is an offence in any part of the UK, or would be if it happened there.
Suspecting – a possibility, more than fanciful, that the property is criminal property (R v Da Silva 2006).

Defences

s.328(2) – no offence if the person made an authorised disclosure under s.338 and, if made before the act, had the appropriate consent. The same applies if they intended to disclose but had a reasonable excuse for not doing so, or were carrying out a law enforcement function.
s.328(3) – the person knew or believed on reasonable grounds that the conduct happened abroad and was lawful there at the time (unless of a description prescribed by order).
Banks and regulated businesses have further exemptions below threshold amounts (s.328(5) to (9)).

Good to know

The property must already be criminal property when the arrangement operates. Money paid in by fraud victims is not criminal property before it arrives, so the arrangement cannot be what makes it criminal (R v GH 2015, Supreme Court).
Commonly charged against “money mules” who let their accounts be used to receive and move fraud proceeds.
s.334 states 6 months for summary conviction. Section 282 of the Criminal Justice Act 2003 reads that as the general limit in a magistrates’ court, currently 12 months.
Sister offences: concealing etc. (s.327) and acquisition, use and possession (s.329). All three carry 14 years.

Legislation: Proceeds of Crime Act 2002, s.328 (opens legislation.gov.uk in a new tab)
Mode of trial: Either way
Maximum penalty: 14 years' imprisonment and/or a fine (on indictment); 12 months' imprisonment and/or a fine (summarily)
Last checked: 2 November 2026, against the current law on legislation.gov.uk

Entering into a money laundering arrangement: questions people ask

What are the points to prove for entering into a money laundering arrangement?

1. Entered into or became concerned in an arrangement 2. Which they knew or suspected facilitated (by whatever means) 3. The acquisition, retention, use or control of criminal property 4. By or on behalf of another person

What is the maximum sentence for entering into a money laundering arrangement?

14 years' imprisonment and/or a fine (on indictment); 12 months' imprisonment and/or a fine (summarily)

Is entering into a money laundering arrangement a summary, either-way or indictable offence?

Entering into a money laundering arrangement is an either-way offence: it can be tried in the magistrates’ court or the Crown Court.

What Act and section is entering into a money laundering arrangement?

Entering into a money laundering arrangement is an offence under the Proceeds of Crime Act 2002, s.328.

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