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ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour

A company director, Peter, arranges for money he knows came from drug trafficking to be used to buy shares in a legitimate company through a nominee, so that the shares appear to be ordinary investments. Which statement is correct?

Peter commits a laundering offence because he knowingly used criminal property, the proceeds of drug trafficking, to buy shares and disguise their origin. It does not matter that he did not commit the underlying crime, nor whether the shares later make a profit.

  1. APeter commits a laundering offence only if the shares are later sold at a profit
  2. BPeter commits a laundering offence because he knowingly dealt with criminal property to disguise its originCorrect
  3. CPeter commits no offence because he did not himself carry out the drug trafficking

Explanation

Laundering offences cover concealing, disguising, converting or acquiring criminal property with knowledge or suspicion of its origin. The person need not have committed the original crime and profit is irrelevant. Both other options add requirements that do not exist.

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