Part 5 – Miscellaneous Money laundering and terrorist financing Section 183: Money laundering: exemptions for mixed-property transactions
Section 183(2), (3) and (4) inserts exemptions from the specified principal money laundering offences in POCA sections 327 and 328. The exemption enables a person carrying on business in the regulated sector to act on behalf of a customer or client in operating an account or accounts held, when the business knows or suspects that part, but not all, of the money or property held for the customer or client is criminal property. This may include for example allowing a customer or client access to money or other property.
	The exemption applies where the person holds funds or other property for the customer or client and cannot identify the specific elements of the funds or other property that are criminal in origin.
	Where the value of funds or other property would fall below the value known or suspected to be criminal as a result of an action, the exemption would not apply. In this case the person would submit an authorised disclosure for the value of criminal funds or property.
	For example, an individual may receive a legitimate monthly salary from their employer and have £2,000 from this salary in their bank account. The individual then makes what the bank suspects to be a fraudulent loan application and receives a further £3,000. The account now contains £5,000. Using the exemption, the bank can allow the customer access to up to £2,000 of their funds without submitting a DAML, as long as a minimum of £3,000 (the value of the suspected criminal funds) is maintained by the bank. If the customer wanted to withdraw £2,500, taking the balance to £2,500, an authorised disclosure would be required on the £500 that would take the balance below £3,000.
	There is no threshold value limit on the use of the exemptions.
	The exemptions cannot be used by any type of business that has been excluded by regulations made by the Secretary of State.