Adequate consideration and proceeds of crime

What you need to know

In June, the Court of Appeal (Civil Division) handed down its judgment in World Uyghur Congress v NCA and others [2024] EWCA Civ 715.

The judgment highlighted the limits of the ‘adequate consideration’ exemption from criminal liability for money laundering (section 329 of the Proceeds of Crime Act 2002).

The Legal Sector Affinity Group anti-money laundering guidance for the legal sector, updated in 2023, currently states:

“You will also have a defence if you received adequate consideration for the criminal property that is acquired, used or possessed.

“This exception applies where there was adequate consideration for acquiring, using and possessing the criminal property.

“It is important to note that the adequate consideration exception is restricted. Section 329 stipulates that consideration will not be adequate if:

• the value of the consideration provided is significantly less than the value of the property acquired, used or possessed; or
• the person who acquires, uses or possesses criminal property knows or suspects that his provision of services or goods may help another person to carry out criminal conduct”

What we’re doing

As your professional body, we amplify the powerful collective voice of more than 200,000 solicitors by advocating at the highest levels on the issues you’ve told us matter most.

We’re working with our expert Economic Crime Task Force to engage with others in the legal and accountancy sectors, the Home Office and the Treasury to determine the potential implications for the legal sector and clients.

We will keep members up to date as the situation develops.