Law Society money laundering Practice Note updated

The Treasury formally has approved the Law Society's updated anti-money laundering Practice Note which guides solicitors on how to comply with the Money Laundering Regulations 2007 and Proceeds of Crime Act 2002.

The Government action means the Solicitors Regulation Authority (SRA) and the courts will now need to have regard to the Practice Note when considering whether a solicitor's conduct was reasonable in relation to allegations of:

• money laundering
• failing to report suspected money laundering and
• failure to comply with the requirements of the Money Laundering Regulations 2007.

With the previous Practice Note having dated from September 2007, the latest website document, which is available to print off, introduces amendments and refinements in view of the legal profession's experience from the first two years of the enactment of the Money Laundering Regulations 2007.

A number of the amendments relate to clarification of definitions. For example, in Chapter 3, on systems, policies and procedures, the requirement to 'provide training' is changed to 'give training' to reflect the wording in the regulations.

In the section on defences (3.9.1) it specifies that the defence of a lack of training only applies if there is not actual knowledge or suspicion of money laundering.

Although not mandatory, solicitors who fail to follow the Practice Note guidelines may well have to answer to the SRA.The Law Society recommends legal practitioners keep up to date with any further amendments by logging on to its website

For suspected money laundering occurring before October 29, 2009, reference should be made to previous versions of the Practice Note.

Anti-money laundering training from ML Solutions 4U

As can be seen from the revisions in the paragraph on possible defence against a solicitor being prosecuted under the Money Laundering Regulations 2007, the defence of lack of training only will apply if money laundering is not known or suspected.

ML Solutions 4U can assist Money Laundering Reporting Officers (MLROs) develop and implement guidelines and policies as well as provide cost-effective client identification procedures and staff training. Our anti-money laundering training seminars are accredited by the Law Society and count towards continuing professional development hours.

ML Solutions offers guidance to help firms establish the required systems and controls appropriate to their organization. Specific workshops are being planned for early 2010.

For an example of one of our techniques, visit our online anti-money laundering training module. Alternatively, simply complete our online enquiry form or call our team on 0845 402 0001 for more information about how we can help ensure your firm fully grasps the task of compliance.

Money Laundering Information » New Law Society Practice Note on Money Laundering Regulations 2007