Top 5 defensive strategies against money laundering charges in the UK

Being accused of money laundering is more than a legal issue, it threatens your reputation, your career and your future. But being charged does not mean you are guilty. With the right defence strategy, it is entirely possible to challenge the allegations, protect your name and avoid life-changing consequences.

At Gherson LLP, our team of white-collar crime specialists, led by Partner Thomas Cattee, has represented clients facing some of the most complex financial crime investigations in the UK. We are known for acting with discretion, precision and strength, especially in high-profile and high-stakes cases.

What is money laundering under UK law?

Under the Proceeds of Crime Act 2002 (POCA), money laundering involves processing, hiding or using the proceeds of criminal activity in any form. There are three core offences:

• Section 327 – Concealing, disguising, converting, transferring or removing criminal property from the UK.
• Section 328 – Entering into an arrangement to acquire, retain, use or control criminal property.
• Section 329 – Acquiring, using or possessing criminal property.

What is criminal property?

Criminal property is any asset, such as money, goods, investments or real estate, that represents the benefit of criminal conduct, either in whole or in part, directly or indirectly. It must also be proven that the person dealing with the property knew or suspected that it constituted the proceeds of a crime.

Even if the underlying criminal act was committed by someone else, handling or using the proceeds of that crime can still amount to a money laundering offence, if you had the required knowledge or suspicion.

Example: Receiving a bank transfer from someone engaged in fraud and using that money to buy a car could be a criminal offence, if you knew or suspected the money was illicit.

Top 5 most effective defensive strategies against money laundering charges

Money laundering charges are serious, but they are also complex, and complexity means there is room to build a strong defence. Below are five of the most effective defensive strategies available under UK law:

1. Making a disclosure to the NCA – authorised disclosure defence

If you have filed a Suspicious Activity Report (SAR) to the National Crime Agency (NCA) before carrying out a transaction and have received either consent or no refusal within the statutory timeframes, you may have a statutory defence under POCA.

This shows that you have acted responsibly and lawfully by alerting the authorities before engaging in an activity that might involve criminal property.

Important: The disclosure must be made before the act is carried out. This defence does not apply retrospectively.

2. Claiming you genuinely did not know – lack of knowledge or suspicion

To secure a conviction, the prosecution must prove that you knew or suspected the property was the proceeds of crime. If you were genuinely unaware, and had no reason to suspect wrongdoing, this can be a complete defence.

This applies to:

• Professionals, such as accountants or lawyers, acting in good faith.
• Business owners dealing with clients or partners in normal commercial circumstances.
• Employees processing routine financial transactions.

However: You cannot ignore “red flags”. In regulated sectors (e.g. banking, legal services or real estate), there is a legal duty to act on signs of suspicious activity. Failing to report such suspicion may itself be a criminal offence.

3. Claiming you were forced – duress

If you acted under threat of serious harm or death, you may be able to rely on the common law defence of duress.

To succeed, you must show:

• You were under an imminent threat of violence or harm.
• You had no reasonable escape from that threat.
• A reasonable person in your position would have acted in the same way.

This defence commonly arises in:

• Organised crime scenarios, where individuals are coerced into laundering money.
• Domestic abuse contexts, where victims are pressured by family or partners.

Duress cannot be claimed if you voluntarily put yourself in a situation where coercion was foreseeable, such as joining a criminal enterprise.

4. Claiming the police got it wrong – procedural errors or unlawful evidence

Even if the underlying facts appear damaging, a case can be undermined if the police or investigators breached your rights.

Under the Police and Criminal Evidence Act 1984 (PACE) and other procedural rules, law enforcement must follow strict standards when:

• Conducting arrests
• Searching premises or digital devices
• Seizing property
• Carrying out interviews under caution.

If evidence was obtained unlawfully or unfairly, or your rights to legal representation were denied, that evidence may be excluded from the trial. In some cases, procedural failures can lead to the case being dismissed entirely.

5. Claiming you were set up – abuse of process or entrapment

Although entrapment is not a standalone defence in UK law, it may support an abuse of process argument.

This occurs when law enforcement or agents of the state:

• Induced you to commit a crime you would not otherwise have committed.
• Acted so unfairly or unlawfully that continuing the prosecution would damage the integrity of the justice system.

If successful, the court can stay (halt) proceedings on the grounds that a fair trial is no longer possible.

Why choose Gherson LLP?

• We understand the stakes – your freedom, family, finances and future are all on the line.
• We specialise in financial crime – we have decades of experience in white-collar crime defence.
• We move quickly – money laundering cases can move fast. We act faster.
• We act with discretion – we protect your reputation as fiercely as your legal rights.

Whether you are under investigation, facing formal charges or have already been arrested, we can step in immediately to protect your interests.

Need immediate legal advice?

Do not wait. If you are facing a money laundering allegation, time is not on your side.

Contact Thomas Cattee, Partner and Head of White-Collar Crime at Gherson LLP, for a confidential consultation today.

Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on X, Facebook, or LinkedIn to stay up-to-date.

Updated: 4 July 2025

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2025