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08 May 2023

Everyone in the world of trading and business has heard of money laundering.

As such, it is always wise to have steps in place that, come tax collection time, will showcase that your business is not involved in any such activity.

However, if you find yourself or your business accused of committing fraud, contact our team at ABV Solicitors. Our fraud solicitor will be able to assess any cases of laundering that you are charged of and will defend your case against HMRC.

So, in this article, we will run through some of the most common ways money is laundered in the UK and some of the defences that our fraud solicitor will offer in each case. Enjoy!

Smurfing

This involves breaking down a large sum of money into smaller amounts to avoid detection by financial institutions.

If you have been accused of smurfing, you will need to contact our fraud solicitor promptly. We will aim to determine the source of the money that has been broken down and look to establish why it was, with the aim of highlighting that there was no illegal activity involved.

Trade-based money laundering

This method involves disguising the proceeds of criminal activity as legitimate trade transactions, such as import/export deals.

This is relatively easy to detect, and, as a business, you will need to keep your eyes open for it. However, if your company should become entangled in it, our team will assess the procedures you had in place to prevent it from occurring, as well as your involvement in the purchasing of trade transactions.

Shell Companies

This method can be a bit harder to defend, as setting up a shell company is an apparent and deliberate attempt to move the money around! Criminals often set up shell companies to move money around without revealing the trustworthy source or purpose of the funds.

So, should you be accused by HMRC of being involved in creating shell companies, our team will seek to determine your knowledge of where the money came from, as well as your involvement in the creation of the company.

Bitcoin and other cryptocurrencies

This, as a method of laundering, has skyrocketed in the last few years. Cryptocurrencies can be used to launder money anonymously, as they are not regulated by a central authority.

As you may have gathered from the previous points, a common defence that our team will use is showcasing your lack of knowledge of the illegal activity being committed, and we will also seek to assess your engagement as an individual or as a company relating to the buying of the currency.

Real estate

Criminals may use the proceeds of crime to purchase real estate, which can then be sold at a profit, effectively “cleaning” the money.

Defence surrounding this would involve our team talking with you about whether you were aware of where the money that you used to purchase the property came from, as well as looking into your or your company’s involvement in the issue at hand.

It’s important to note that these methods are illegal and can have severe consequences for those involved. The UK government has put in place measures to combat money laundering, such as the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017. So, if you are accused of any of these kinds of smurfing, be sure to contact our team at ABV Solicitors today.