The Solicitors Regulation Authority (SRA) in the UK is stepping up its efforts to ensure solicitors firms do not become embroiled in money laundering activity and are compliant with the various regulations and legislation associated with anti money laundering compliance.
The legal sector is one of a number of areas of work that attracts organised criminals seeking to launder the proceeds of crime. Solicitors have a duty under the Code of Conduct to ensure their business complies with anti-money laundering legislation and the Proceeds of Crime Act (in the UK).
The SRA has been undertaking a specific piece of focus work, which started on Monday 8 September,2014 until May 2015, working with firms to ensure robust systems are in place to guard against solicitors becoming involved in money laundering. This will include closer engagement with those firms identified as most at risk, and providing support and guidance across the whole of the profession from large firms to sole practitioners.
Paul Philip, SRA Chief Executive, said: “Law firms often handle large sums of money, and this means they attract those who seek to launder the proceeds of crime. We want to work with the profession to ensure that all firms, no matter how large or small, have the systems in place to guard against money laundering and that they are compliant with the current regulations and legislation.
“We will also be testing the systems used within firms to report money laundering, and how widely these systems are known within each firm.
“We also want to ensure solicitors are meeting their legal obligations to report suspicious transactions to the appropriate authorities. The SRA will be taking a robust stance on anti money laundering compliance and will deal promptly with any firm that that transgresses the rules.
“Our work will focus initially on those firms deemed at highest risk, but all firms need to be aware of the issue. There will be serious consequences for those who fail to take their obligations seriously.”
The SRA will report their findings after the focus work is completed early next year. perhaps, we should be following suit here in this jurisdiction.
– a briefing on legal news from Kilkenny Lawyers Holland Condon