Money Laundering and Why we have to comply
Anti-money laundering legislation was introduced by the government in 2003. It applies to all financial institutions and this means and includes all solicitors practices in England and Wales
It was introduced by the Government in an effort to reduce crime and particularly focuses upon organised crime.
It introduced a number of duties upon solicitors, which if not followed can result in the solicitor being imprisoned. In very simple terms the legislation and its ultimate effect requires us to -
verify a client's identity properly
consider what a client is instructing us to do and whether there is any offence being committed
report details of any offence
not accept cash payments
This is very important and means therefore that all clients should think very carefully before revealing any criminal dealings to any solicitor or other institution eg banks or estate agents
Examples of reportable matters include benefit fraud, mortgage fraud, tax evasion and theft.
The full text of the legislation as introduced can be found by following the link below
http://www.opsi.gov.uk/si/si2003/20033075.htm
Nick Battye April 2007