In 2002 and again in 2004 the Law Society's Money Laundering Taskforce warned criminal defence solicitors not to accept bail security monies into their client accounts due to the risk of money laundering (see end for details).
Handling bail monies, where you know or suspect they are criminal property, will put you at risk of a conviction for money laundering.
Solicitor sentenced to four years
The issue has been highlighted again with the case of Anthony Blok at Croydon Crown Court.
Blok was convicted on 1 July 2009 of a section 327 money laundering offence for taking hold of two bags containing £75,000 in £50 notes and paying them into court as bail security for his client.
Blok was representing a client who was on charges for fraud in relation to an international money laundering ring.
Blok applied for bail for this client on a Friday, which was set at £75,000 in cash. During the hearing he called the client's daughter as a witness to provide evidence about the limited funds available to the family to meet the bail requirements.
On the following Monday, Blok deposited the £75,000 with the court cashier. The next day, police seized the cash from the bank where it had been deposited.
When questioned about the origins of the funds, Blok said he was given the funds outside the court by a man he did not know and he understood that the funds were raised by family and friends over the weekend.
However, CCTV footage at the court showed Blok meeting with the client's daughter and another woman. They handed him two bags of money which he then took to the cashier's office.
The court accepted that in the circumstances it was not reasonable for that amount of money to have been raised legitimately in such a short time, and that the false story provided by Blok demonstrated that he knew or suspected that the funds were from a criminal source.
Blok was sentenced to 4 years jail on this and other money laundering offences.
Avoiding the risk
The Taskforce has worked with the Court Service to develop procedures across all courts, so that bail securities would be held by the courts.
The court will require identity information including confirmation of residential address from all who deposit bail securities and funds of more than £1,000 will be held in a separate deposit account.
Money Laundering Reporting Officers should alert any defence solicitors in their firm of the risks of accepting bail security monies from their client, either through their client account or through physical possession.
Clients should be told to provide the funds directly to the court.
More information