Proceeds of Crime and Money Laundering Charges

Updated October 8, 2026

Possession of property obtained by crime and laundering proceeds of crime are different allegations. A financial transaction is not automatically proof of either offence. Counsel should identify the property, its alleged origin, the conduct attributed to the accused and the knowledge, belief or recklessness required by the charge.

Possession and laundering are not identical

Criminal Code section 354 concerns possession of specified property or proceeds with knowledge of its criminal origin. Section 462.31 addresses specified dealings with proceeds, the intention to conceal or convert, and the required knowledge, belief or recklessness. These criminal offences must not be confused with every reporting or compliance obligation under separate financial legislation.

Tracing the property and the transaction

Banking records, transfers, beneficial ownership, business records, messages and the source of funds may be central. Review the prosecution's connection between the property and an underlying offence, as well as the accused person's actual role and state of mind. Suspicion, association or an unusual transaction should not be substituted for proof of each element.

Restraint orders and forfeiture concerns

Section 462.33 provides for judicial restraint orders concerning specified property. Such an order is not the same as a final determination of guilt or forfeiture. Obtain the complete order and advice about its terms, permitted dealings and any available application. Do not move, hide or dispose of property in breach of an order.

What should you preserve?

Keep complete transaction records, source-of-funds documents, contracts and correspondence. Provide counsel with an accurate chronology and details of any seized or frozen property. Speak with counsel before providing an account to investigators. Immigration, professional and commercial consequences may need to be addressed alongside the criminal proceeding.

Sources and scope

Sources: Criminal Code section 354; Criminal Code section 462.31; Criminal Code section 462.33. This is an updated replacement for a legacy overview. It is general information, not legal advice. The exact charge, applicable statutory version and evidence require individual review.