I do not think that we are talking about a retrospective effect in the way that the hon. Gentleman claims. I hope that I can convince him of that.

As currently drafted, the legislation provides that it is does not matter whether criminal conduct took place before or after the passing of the Bill. It would be quite impractical to apply part 7 to only proceeds that were acquired through conduct that was committed after the Bill came into force. That would mean that the Bill would have no effect for many years, and it would create uncertainty about the status of the present law, which also catches conduct committed prior to the date on which the relevant provisions in the Drug Trafficking Act 1994 and the Criminal Justice Act 1988, as amended by the Criminal Justice Act 1993, were brought into force.

I emphasise that the way in which subsection (4)(c) is drafted does not mean that the actual principal offences or the failure to report an offence may be retrospective. Those offences can be committed only if the laundering occurs, or the actual knowledge or suspicion for reporting purposes is formed, after the Bill comes into force. The subsection does, however, mean that a person who committed an acquisitive crime before or after the Bill comes into force, and who then launders the proceeds of that crime after the legislation has been commenced, or who fails to report his suspicions after the commencement, will commit an offence under clauses 321 to 324. Hon. Members will agree that that is sensible.

In order to commit a money laundering offence, a person must know or suspect that property is the

proceeds of crime. If the person has that suspicion, he should stop any dealings with it, regardless of how long ago the offence was committed. I hope that that convinces the hon. Member for Surrey Heath.

The construction of the offences, which replicates the approach taken in existing legislation, is fully compatible with the European convention on human rights. Article 7 of the ECHR requires that there shall be no punishment without law. However, in order to commit a money laundering offence, a person must do something in addition to the original crime that generated the proceeds. People who have already generated proceeds from criminal conduct will have time to become aware of the provisions of part 7 before they come into force. They will be able to take steps to ensure that they do not commit a money laundering offence.

In view of that explanation of the operation of part 7, I hope that the hon. Gentleman will withdraw the amendment.