Government raises POCA ‘exemption’ threshold

The Government has published the Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022 and an accompanying explanatory memorandum.

The Order will amend section 339A of the Proceeds of Crime Act 2002 (“POCA“) to increase the value below which some transactions can be carried out by certain businesses (i.e. “deposit taking bodies”, electronic money institutions and payment institutions) in operating an account for a customer, from £250 to £1,000, without committing an offence under sections 327-329 of POCA.

The decision has been made in order to improve the suspicious activity reporting regime by reducing the volume of ‘defence against money laundering’ reports received by the National Crime Agency. This is to allow it to focus on opportunities that lead to asset seizure and deliver cost savings to the regulated sector.

Duncan Scott