Fungibility, ring-fencing and one degree of separation

JonathanFisher QC (+44 (0) 20 3709 9470, jf@brightlinelaw.co.uk)is lead counsel at Bright line Law (www.brightlinelaw.co.uk).

Has the notion of fungibility has been appliedtoo widely in the UK’s money laundering legislation? asks Jonathan Fisher QC. In this article he also considers whether thereis scope for a greater role for ring-fencing where there are mixed funds. Some“push-back” against the conventional application of section 340(3) (a) of theProceeds of Crime Act 2002 would be warmly welcomed by the business community.Increased use of risk-fencing is tempting and consistent with common sense,but, he argues, the risk of committing a technical criminal offence will remainextant until legislative intervention provides some clarity.