The breadth of UK anti-money laundering legislation is an unwelcome surprise for the uninitiated. While the expression is associated with hardcore criminality such as bank robbery or drug related crimes, any involvement, even tangentially, with cartel activity, IP rights infringement or tax evasion could easily bring a business person in to contact with money that is classed as the "proceeds of crime".

The Proceeds of Crime Act 2002 (POCA) deliberately casts a wide net and is intended to catch any profit from any criminal activity, no matter how limited the crime or inconsequential the profit. The regime is backed up by stringent penalties regarding participation in, or the failure to report, money laundering of up to 14 years.

Thankfully businesses can largely mitigate the risks with simple steps: adequate staff screening and a good corporate ethics policy backed up by regular training. Company directors are also advised to take a prudent approach to acquisitions and joint ventures, factoring in any particular risks associated with the activities and location of the counterparty.

How to keep your company on side with the law

Businesses are facing increasing red tape but there are measures they can take to ensure they are prepared

The regulators: who's who

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