Failure to disclose (POCA s.330): no privilege for information given to further a crime
Joanna Mazur, a solicitor at an SRA-authorised firm in Bristol, is acting for Kofi Mensah on his purchase of a house, a matter within the regulated sector. In a meeting at which she is advising him on the purchase, Kofi tells her that the deposit and the balance of the price will come from cash his brother made selling stolen goods, and asks her to complete quickly so the money is 'turned into bricks' before anyone asks questions. Joanna is the firm's fee-earner, not its nominated officer.
What is Joanna's obligation under s.330 of the Proceeds of Crime Act 2002?
Choose one answer to see the reasoning.
Worked answer
Correct answer E: She must disclose to the nominated officer as soon as practicable, because information given to further a criminal purpose is not received in privileged circumstances.
THE RULE TO REMEMBER
A regulated-sector legal adviser who suspects money laundering must disclose to the nominated officer as soon as practicable; privilege does not protect information given to further a crime (POCA s.330).
Failure to disclose (POCA s.330): no privilege for information given to further a crime
Section 330 makes it an offence for a person in the regulated sector who knows or suspects, or has reasonable grounds for knowing or suspecting, that another person is engaged in money laundering not to make the required disclosure to a nominated officer (or the NCA) as soon as is practicable. Joanna has at least suspicion and can identify the persons involved. Section 330(6)(b) and (10) give a professional legal adviser an exception where the information came to her in privileged circumstances, such as from a client in connection with legal advice. But s.330(11) disapplies that where the information is communicated with the intention of furthering a criminal purpose. Kofi told her about the source of funds so that she would complete the purchase and launder the money, so the exception is unavailable and she must report to the nominated officer.
Why A is wrong: Section 330(11) removes the privileged-circumstances protection where information is given with the intention of furthering a criminal purpose, as here.
Why B is wrong: The s.330 test includes suspicion and reasonable grounds for knowing or suspecting, not only actual knowledge.
Why C is wrong: The disclosure must be made as soon as is practicable; completing first would also risk a principal money laundering offence.
Why D is wrong: Telling Kofi about a report is likely to prejudice an investigation and risks the tipping-off offence; there is no duty to warn him.
A little more practice done.
Related questions
Savings built up from tax evasion are criminal property (POCA 2002 s.340)
Which of the following best describes the status of the savings under Part 7 of the Proceeds of Crime Act 2002?
Conducting and settling litigation is not a s.328 POCA arrangement (Bowman v Fels)
Which of the following best describes Mehmet's position under the Proceeds of Crime Act 2002?
Tipping off: telling a client of a report to dissuade an offence (POCA ss.333A and 333D(2))
Has Grace committed the offence of tipping off under s.333A of the Proceeds of Crime Act 2002?
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