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What are Predicate Offenses

by | Feb 24, 2021 | Financial Crime Academy, Money Laundering (ML)

A predicate offense, or predicate crime, refers to a crime which is a component of a larger crime. In a financial context, the predicate crime would be any crime that generates monetary proceeds. The larger crime would be money laundering or financing of terrorism.
With respect to money laundering, in particular, a predicate offense that generates funds or assets is required as an entry condition. Predicate offenses vary in each country and are usually codified in a country’s criminal code. In the European Union, for example, the so-called sixth European Union Anti-Money Laundering Directive defines and standardizes 22 predicate offenses for money laundering in all its member states.

Exemplary predicate offenses include crimes such as narcotrafficking, tax evasion, murder and grievous bodily harm, corruption, fraud, smuggling, human trafficking, illegal wildlife trafficking, and forgery.

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