KYC360º FAQ

Are all crimes capable of predicating money laundering?

Different jurisdictions define crime in different ways for the purposes of anti money laundering legislation. Generally the difference between the definitions can be summarized as being:

• The degree of severity of crime regarded as sufficient to predicate an offence of money laundering. For example in some jurisdictions it is defined as being any crime that would be punishable by one or more years imprisonment. In other jurisdictions the necessary punishment may be three or five years imprisonment.
• A requirement either for the crime to be recognized both in the country where it was committed and by reference to the laws of the jurisdiction where the laundering takes place (dual criminality) or simply a requirement for the crime to be recognized in the country where the laundering took place (single criminality).
• In practice almost all serious crimes, including drug trafficking, terrorism, fraud, robbery, prostitution, illegal gambling, arms trafficking, bribery, corruption are capable of predicating money laundering offences.