This guy is extremely lucky all that happened to him is that he got his bank account closed. With the amounts of money he was dealing in, what he was doing could have easily gotten him arrested.
Basically, while you are in theory free to move money around as you please - for yourself or as a service to others - doing so in large quantities will get you scrutinized. If uppon scrutiny there is any doubt as to from where the money came or where it went, you'll be flagged for "money laundering". Once that happens the "authorities" will essentially go with a haircomb through anything and everything you've ever done, and then, uppon dicsovering that you are in fact not a criminal, keep on looking until they actually find something to justify all of that effort they just wasted on you.
[0] http://www.coindesk.com/florida-localbitcoins-user-loses-bid...
I found a quote on this: American police need probable cause to make an arrest, but in the United Kingdom, officers can arrest on suspicion. Probable cause is defined as the belief that a crime was probably committed, and that the suspect was probably responsible. Reasonable suspicion means that a right-minded individual would have grounds to suspect that a crime had been committed and that the suspect might be responsible. To have probable cause, greater evidence is required.
Being arrested on suspicion in the U.K. isn’t so unpleasant as being arrested in the U.S. In fact, you’re likely to be released within hours without paying any bail.
http://www.slate.com/articles/news_and_politics/explainer/20...