10. Reforming the Proceeds of Crime of Act

Our final paper in the Decalogue abstract series is written by Dylan Kennett, Senior Associate at DLA Piper

Reforming the Proceeds of Crime of Act | Abstract

Despite London being the leading capital market in Europe, few cannabis or cannabinoid-related companies have succeeded in raising money on public markets in the City to date. We believe there is a clear and widely accepted public interest in allowing the industry access to the largest capital market in Europe, and it is critical for the industry to be able to raise capital to explore and deliver the benefits of cannabis & its derivatives to society broadly. The single most important challenge is the cost of compliance, and in particular the interpretation of an ageing catch all clause in the Proceeds of Crime Act 2002. We believe this interpretation is selective at best, with many listed companies in other industries and financial intermediaries seemingly ignoring it, and is at odds with the way previous London listings have been able to proceed.