Proceeds of Crime Act 2002 (POCA) — the complete UK guide
The criminal-law spine of the UK AML regime — principal offences, reporting duty, tipping off, DAML, defences, and the asset-recovery powers used by UK law enforcement.
By Mehmood Rajoka · Last updated 2026-06-08
TL;DR — Quick Summary
- •The Proceeds of Crime Act 2002 (POCA) is the criminal-law spine of the UK AML regime — it creates the principal money laundering offences, the SAR reporting duty for regulated-sector workers, the tipping-off offence, and the asset-recovery powers used by UK law enforcement.
- •POCA sits alongside MLR 2017 — POCA is the criminal-law backbone; MLR 2017 is the regulatory framework for prevention and compliance.
- •Principal offences (ss.327-329): concealing, arranging, or acquiring criminal property — each up to 14 years' imprisonment plus an unlimited fine.
- •Reporting offences (s.330): failure to report knowledge or suspicion of money laundering — up to 5 years. Tipping off (s.333A) — up to 5 years.
- •Defence Against Money Laundering (DAML) under s.335 — request the NCA's consent before completing a transaction that would otherwise be a principal offence.
Answer-first summary
What is the Proceeds of Crime Act 2002?
The Proceeds of Crime Act 2002 (POCA) is the UK statute that creates the principal money laundering offences (ss.327-329), the suspicious-activity reporting duty for the regulated sector (s.330), the tipping-off offence (s.333A), and the asset-recovery framework. POCA is the criminal-law backbone of the UK AML regime; MLR 2017 is the regulatory framework for prevention and compliance. The two together define what UK regulated-sector firms must do and what UK law enforcement can do to recover criminal proceeds.
- Principal offences in ss.327-329 — up to 14 years' imprisonment each
- Reporting duty for regulated sector in s.330 — up to 5 years for failure
- Tipping off offence in s.333A — up to 5 years
- Asset recovery via confiscation (Part 2), civil recovery (Part 5), and UWOs
The three principal money laundering offences
POCA ss.327-329 cover the act of money laundering itself. Each carries up to 14 years' imprisonment plus an unlimited fine:
Section 327 — Concealing criminal property
An offence to conceal, disguise, convert, transfer, or remove criminal property from the jurisdiction. 'Criminal property' under s.340(3) is any property that constitutes a person's benefit from criminal conduct, where the alleged offender knows or suspects this.
Section 328 — Arrangements that facilitate money laundering
An offence to enter into, or become concerned in, an arrangement that the person knows or suspects facilitates the acquisition, retention, use, or control of criminal property by or on behalf of another. This is the offence most likely to catch a regulated-sector professional acting for a client.
Section 329 — Acquisition, use, possession
An offence to acquire, use, or have possession of criminal property. Defences include (a) the consent regime under s.335 (DAML), (b) acquisition for adequate consideration, and (c) authorised disclosure under s.338. Each principal offence carries up to 14 years' imprisonment plus an unlimited fine.
The regulated-sector reporting offences
Three offences that apply specifically to people in the regulated sector — accountants, lawyers, estate agents, financial-services workers — and to MLROs:
Section 330 — Failure to disclose (regulated sector)
An offence for a person in the regulated sector who knows or suspects (or has reasonable grounds for knowing or suspecting) money laundering, and who fails to make a disclosure as soon as practicable. Carries up to 5 years' imprisonment. The reporting threshold is 'knowledge or suspicion' — lower than the criminal standard of proof.
Section 333A — Tipping off (regulated sector)
An offence to disclose that a SAR has been or is being made, where the disclosure is likely to prejudice an investigation. Also covers disclosing the existence of a money laundering investigation. Carries up to 5 years' imprisonment. Limited statutory defences apply (e.g. within-group disclosure under s.333B-D).
Section 331 — MLRO failure to disclose
An offence for a Nominated Officer or MLRO in the regulated sector who, having received an internal disclosure under s.330, fails to make an authorised SAR to the NCA as soon as practicable. Same 5-year maximum as s.330.
Defences under POCA
Four defence routes for regulated-sector professionals — but each is conditional. The defences should not be relied on as substitutes for the firm's underlying AML programme:
Authorised disclosure (s.338) — the SAR route
Filing a SAR with the NCA provides a defence to the principal offences in ss.327-329, provided the disclosure is made before the prohibited act or as soon as practicable after, and the disclosure is made in good faith.
Consent — Defence Against Money Laundering (s.335)
Where a specific transaction would otherwise be a principal offence, the firm can seek the NCA's consent through a DAML. Approval is implied if no response is received within 7 working days (the 'notice period'). A refusal triggers a further 31-day 'moratorium period' during which the transaction is paused.
Adequate consideration (s.329(2)(c))
It is a defence to s.329 that the person acquired, used, or had possession of criminal property for adequate consideration. The defence does not extend to ss.327 or 328.
Privileged circumstances (s.330(6))
The reporting duty in s.330 does not apply to a professional legal adviser where the information came to them in privileged circumstances — broadly, when seeking legal advice or in connection with legal proceedings. The crime/fraud exception applies: privilege does not protect communications made to further a crime.
Asset recovery and investigation powers
POCA gives UK law enforcement powers that run alongside (and sometimes instead of) criminal prosecution:
- POCA Part 2 — Confiscation orders made by the Crown Court following conviction. The court calculates the defendant's 'criminal lifestyle' benefit and orders payment, enforceable as a fine plus imprisonment for default.
- POCA Part 5 — Civil recovery via the High Court. Allows the National Crime Agency to recover the proceeds of unlawful conduct without a criminal conviction, on the civil standard of proof (balance of probabilities).
- POCA Part 8 — Investigation powers including production orders, search warrants, customer information orders, and account monitoring orders.
- Unexplained Wealth Orders (UWOs) — added by the Criminal Finances Act 2017, amended by the Economic Crime (Transparency and Enforcement) Act 2022. Require the respondent to explain how they obtained property valued over £50,000.
FAQ
Answer-first summary
What is the Proceeds of Crime Act 2002?
The Proceeds of Crime Act 2002 (POCA) is the UK statute that creates the principal money laundering offences, the suspicious-activity reporting duty for the regulated sector, the tipping-off offence, and the asset-recovery framework used by UK law enforcement. POCA sits alongside the Money Laundering Regulations 2017 — POCA is the criminal-law backbone; MLR 2017 is the regulatory framework for prevention and compliance.
Answer-first summary
What are the principal money laundering offences under POCA?
Three principal offences sit in POCA ss.327-329. Section 327 — concealing, disguising, converting, transferring, or removing criminal property. Section 328 — entering into or becoming concerned in an arrangement that facilitates the acquisition, retention, use, or control of criminal property by another. Section 329 — acquiring, using, or having possession of criminal property. Each carries up to 14 years' imprisonment plus an unlimited fine.
Answer-first summary
Who does the POCA reporting duty apply to?
POCA s.330 applies to any person carrying on business in the 'regulated sector' as defined in Schedule 9 — including accountants, tax advisers, auditors, solicitors, barristers, estate agents, TCSPs, banks, investment firms, insurers, and cryptoasset firms. The duty is to report knowledge or suspicion of money laundering 'as soon as practicable' after the information comes to them. Failure carries up to 5 years' imprisonment for the individual.
Answer-first summary
What is a DAML under POCA?
A Defence Against Money Laundering (DAML), sometimes called a 'consent SAR', is a request to the NCA under POCA s.335 (or s.336 for terrorism) for permission to undertake an act that would otherwise be a principal money laundering offence. Approval is implied if the NCA does not respond within 7 working days. A refusal triggers a further 31-day moratorium period during which the transaction is paused. DAMLs are needed when a firm knows or suspects criminal property is involved in a transaction it would otherwise need to complete.
Answer-first summary
What is tipping off under POCA?
Tipping off under POCA s.333A is the criminal offence of disclosing — to a client or any other person — that a SAR has been or is being made, where the disclosure is likely to prejudice an investigation. It also covers disclosing the existence of a money laundering investigation. The offence carries up to 5 years' imprisonment. Limited statutory defences apply (in-group disclosures under ss.333B-D) but they are narrow.
Answer-first summary
How does POCA interact with MLR 2017?
POCA is the criminal-law spine — it creates the offences and the reporting duty. MLR 2017 is the regulatory framework — it requires regulated firms to operate an AML compliance programme (risk assessment, CDD, training, monitoring, record keeping) designed to prevent and detect the conduct POCA criminalises. The SAR pipeline runs from MLR 2017 internal disclosures into the POCA s.330 / s.331 external reporting obligation. Firms must comply with both.
Answer-first summary
What asset recovery powers does POCA give law enforcement?
POCA Part 2 — confiscation orders following criminal conviction. POCA Part 5 — civil recovery via the High Court without a criminal conviction, on the civil standard of proof. POCA Part 8 — investigation powers including production orders, search warrants, customer information orders, and account monitoring orders. The Criminal Finances Act 2017 added Unexplained Wealth Orders (UWOs), now amended by the Economic Crime (Transparency and Enforcement) Act 2022.