Money Laundering Regulations 2007 news 26/01/2009 Law Society publishes results of money laundering review

The Law Society has announced the results of its review into the implementation of the Money Laundering Regulations 2007.

One result was that most law firms in the Regulated sector had updated their internal policies, and had put appropriate anti-money laundering training in place, to meet the obligations imposed by that legislation. However, many of the practitioners interviewed for this review expressed concern at the increased regulatory burden, a view shared by the Law Society, which promised to lobby for a more proportionate regime.

Central findings include:

43% of those interviewed said it was difficult to find the relevant information to allow their firms to use simplified due diligence (or know your client) processes; 64% felt deterred from using the reliance provisions by the potential to be held criminally liable for omissions made by the persons relied upon; and a general message through the results was that costs had increased, with half of those who reported figures claiming a rise of more than 10%.

The Societys Alison Matthews said, The results confirm the messages that those on the Money Laundering Task Force and within the Law Society have been receiving from across the profession, in day to day discussions and specific networking groups. We see these results as a useful starting point to generate discussions about how we can work together with the profession, law enforcement and government to develop a more proportionate and effective anti-money laundering regime for the UK.

A previous survey, from July 2008, had found that firms had largely been swift to comply with the Money Laundering Regulations 2007, but more data was needed to understand the costs of this. The new survey provides that data, which will underpin the Law Societys representations to Government in the coming year.

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