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Michael Holly
Michael Holly, Solicitor
Category: Law
Satisfied Customers: 6827
Experience:  I have 20 years of experience as a solicitor in litigation and other areas
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A large UK charity has found that funds supplied to another

Customer Question

A large UK charity has found that funds supplied to another small UK charity who should have sent them on to an overseas NGO, In fact the small charity then sent them to a UK company requesting them to convert them in to a foreign currency and then send them to the overseas NGO. (They in fact did not do so and just kept the money); My question is - would the act of sending the funds by the small charity to a UK company and asking them to convert in to a foreign currency ( an African currency) and then send them on to them in any way constitute an offence such as Money Laundering?
This is only a part of what is a fraud of several hundred thousand pounds, but I am wondering if this action by the small charity of in effect trying to use a UK company as a 'currency converter' could give sufficient grounds to search their premises and access their accounts?
Sounds maybe a bit complicated, but is in fact just a simple question about one point.
I would be really grateful if you could give me your opinion
Submitted: 9 months ago.
Category: Law
Expert:  Michael Holly replied 9 months ago.

Not in any traditional sense of the term money laundering.

Money laundering is where it is the source of the money that is the problem, from criminal activities.

The object is to turn dirty money into clean money so, for example, the criminal buys a property using the cash from extortion , sells the property and gets money which has come from the sale of a house supplied by the solicitors acting on the house transaction - clean money.

Here the initial monies are supplied by the large charity so there source is known.

However, bear in mind does not mean that the transaction was not fraudulent even if it did not constitute money laundering.

Best wishes

Michael

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