Topics

Anti-money laundering

Thursday 27 November 2008

Anti-money laundering logo

Compliance with money laundering obligations is one of the greatest challenges for solicitors in the UK today. The Law Society is committed to assisting solicitors meet those obligations and provide a robust defence against money launderers attempting to abuse our professional services.

Latest news

Supporting solicitors with AML compliance: give us your feedback

The Law Society is looking to expand the range of services it offers solicitors to assist with anti-money laundering (AML) compliance. To ensure our services are aligned with the profession's needs, we need your feedback.
Complete our survey - closing date: 12 December 2008

SOCA - suspicious activity report annual review

The Serious Organised Crime Agency (SOCA) has issued its annual review of the suspicious activity reports (SARs) regime. While reporting levels have reduced, increased electronic reporting and a collaborative approach between SOCA and the reporting sector is enhancing the efficiency of the SARs regime in the UK.
Read more

Identity cards for foreign nationals

From 25 November, identity cards will be compulsory for foreign nationals from outside the European Economic Area (EEA) and Switzerland. The first cards will go to students and the husbands, wives and partners of permanent residents who are given permission to extend their stay in the UK. The ID cards can be used by solicitors to verify identity for client due diligence purposes under the Money Laundering Regulations 2007.
View our AML practice note on client due diligence
More information on the ID scheme

Anti-money laundering training: attend our seminars

The Law Society has launched a series of regional seminars to help solicitors keep up to date with money laundering compliance. The seminars will cover the risk-based approach; designing systems for compliance; client ID; due diligence for beneficial owners; undertaking ongoing monitoring; reporting obligations; and the new tipping off provisions. The seminars will take place from November 2008 to February 2009.
Download an event programme and booking form (PDF, 124kb)

Money laundering: FATF updates list of high risk countries

The Treasury has issued a warning by the Financial Action Task Force (FATF) of heightened money laundering risks in some jurisdictions. In the case of Iran and Uzbekistan, the Treasury has stated that there is a higher risk of money laundering which will require enhanced due diligence under regulation 14.

In relation to Pakistan, Turkmenistan, Sao Tome and the northern part of Cyprus, firms should consider the statements by FATF and the Treasury as part of their overall risk assessment with respect to each client and retainer.
HM Treasury announcement - 20 October 2008
Money Laundering Regulations 2007 – Regulation 14
Law Society anti-money laundering practice note

Law Society monitoring project

The Law Society's project to monitor the impact of the Money Laundering Regulations on solicitors is in full swing. We will use the research to develop further advice for the profession, tailor products and services to assist with compliance, and lobby government on areas requiring change.
Read more and find out how you can get involved

Mortgage fraud – latest news

The government has recently announced a package of initiatives designed to stimulate the shrinking UK housing market. While many, including the Law Society, have welcomed some of these initiatives, solicitors need to be alert to possible money laundering and mortgage fraud issues that may now arise.
Read more

TCSPs – are you registered?

Where solicitors operate trust and company service providers (TCSPs) that are not regulated by the Solicitors Regulation Authority, they need to register these entities with HM Revenue & Customs (HMRC) by 30 September 2008. HMRC have issued new guidance to help you decide if you need to register.
Find out more

Equivalence: what's in a word?

When HM Treasury issued its list of equivalent jurisdictions earlier this year, many in the regulated sector were surprised at some of the inclusions. While similar legislation may well have been passed in these jurisdictions, solicitors dealing with their counterparts in countries on the list knew that the law and practice did not always coincide.
Read more

In practice

Risk-based approach – what is it?

Find out more about the risk-based approach and the factors to take into account when assessing the risk of money laundering.
Read more

PEPs

To counter the risk posed to the UK's regulated sector from money laundering, solicitors are now required to conduct enhanced due diligence on politically exposed persons.
Read more

Non face to face transactions

The Money Laundering Regulations 2007 states that clients who do not meet the regulated professional in person pose a higher risk of money laundering. Solicitors are required to conduct enhanced due diligence with respect to these clients.
Read more

HM Treasury alert on higher risk jurisdictions

HM Treasury has issued advice on specific jurisdictions presenting heightened risks of money laundering or terrorist financing.
Read more

Risk based approach: FATF guidance for non-financial sector

Representatives of the legal profession here and abroad are contributing to a FATF-led project to develop FATF guidance on implementing the risk based approach, aimed specifically at the non-financial parts of the regulated sector.
Read more

Case notes

Defence of adequate consideration

The High Court in R v Hogan [2007] EWHC (Admin) 978 had to consider the defence of adequate consideration to a section 329 POCA 2002 offence.
Read about the case

Restraint orders and solicitors' fees

The Court of Appeal considered whether the movement of fees from the client account to the office account would be a breach of a criminal restraint order, in the case of Irwin Mitchell (a Firm) v Revenue and Customs Prosecutions Office and Another, Times 27 August 2008 (CA Crim).
Read about the case

Background

31 July 2008
SOCA releases UK threat assessment 2008/09
16 May 2008
Equivalent jurisdictions
2 April 2008
HM Treasury alert on higher risk jurisdictions
Canada scores low in FATF ratings
17 December 2007
Money Laundering Regulations
Society secures legal professional privilege
12 December 2007
Mortgage fraud – are you being targeted?
5 October 2007
Law Society challenges new tipping-off offence
25 October 2007
Financial sanctions administration moves to HM Treasury

More anti-money laundering information

E-mail updates

Subscribe to AML Update to stay up to date with AML developments in the UK and around the world. AML Update replaces Gatekeeper.
Register for e-mail updates
Read previous editions of Gatekeeper

AML services

Training

Two new series of AML training seminars are running until February 2009.

Level 1 seminars will provide general training on AML issues for MLRO’s and compliance staff in the legal sector who are familiar with relevant legislation and have read the Law Society’s anti-money laundering practice note.
Level 2 seminars will provide more advanced training for attendees with a detailed knowledge of the legislation and practice note.

Details and booking form (PDF, 123kb)

Practice notes

Anti-money laundering practice note
Mortgage fraud practice note

Practice Advice Service

The Practice Advice Service can assist solicitors with navigating the new practice note and respond to general queries on AML compliance. It does not provide legal advice or advice on conduct issues, nor does it advise on compliance with the 2003 regulations.

Read FAQs about anti-money laundering

Anti-money laundering directory

Solicitors needing legal advice on anti-money laundering (AML) compliance can access an online directory of solicitors who practise in this area and are willing to be contacted by other solicitors seeking legal advice.
View the online directory