Predicate Offence
A predicate offence is the underlying criminal activity that generates the proceeds laundered through a money laundering offence. Under POCA, almost any criminal offence — committed in the UK or overseas — that produces a financial benefit can be a predicate offence. Common examples include tax evasion, fraud, drug trafficking, corruption, theft, and modern slavery.
an accountant does not need to identify or prove the specific predicate offence to report a suspicion. Knowing or suspecting that funds derive from criminal conduct is enough to trigger the SAR obligation under POCA s.330 — even if the underlying offence is unclear.
Other terms that go with Predicate Offence
Money laundering is the process of disguising the proceeds of crime so they appear to come from a legitimate source. Under the Proceeds of Crime Act 2002 (POCA), the principal money laundering offences are concealing criminal property (s.327), entering into arrangements that facilitate it (s.328), and acquiring, using, or possessing criminal property (s.329). All three carry maximum penalties of 14 years' imprisonment.
A Suspicious Activity Report is a formal disclosure made to the National Crime Agency (NCA) when a person in a regulated sector knows or suspects that someone is engaged in money laundering or terrorist financing. Filing a SAR provides a defence against money laundering offences. Failure to file when there is grounds to do so is itself a criminal offence.
Put Predicate Offence into practice with Certivus
Knowing the term is the first step. Certivus gives you the workflows — client intake, CDD, EDD, PEP and sanctions screening, audit-ready records — to apply it across every client.
Back to the full glossary