As solicitors become increasingly vigilant to money laundering, some criminals are looking for new ways to obtain the veneer of legitimacy offered by solicitors without attracting their scrutiny.
One way they can achieve this is by hijacking the identity of an existing firm, and representing themselves as solicitors.
This is particularly an issue with respect to conveyancing transactions and mortgage applications.
Criminals will seek to obtain access to a legitimate firm's letterhead and other paperwork. They will then re-create this paperwork, but amend the contact details and add in the names of non-existent solicitors.
More advanced criminals will seek to register a new branch office with the Solicitors Regulation Authority, so that they appear on the professional register. The SRA are now undertaking more stringent checks on all such new applications.
Solicitors can take steps to protect themselves from such fraudsters by:
- Checking the identity of the solicitor or conveyancer on the other side of the transaction where you do not know them personally or professionally.
- Taking care when providing your letterhead to prospective clients.
Checking a solicitor's identity
The Law Society's practice notes outline ways you can verify the identity of the solicitor or conveyancer acting for the other side.
Safeguarding firm stationery
Where a person seeks to instruct you and you have concerns about the validity of the identity information they provide or have concerns that they are seeking to involve you in money laundering or a fraud, you may decide not to accept their instructions.
If this is the case and you have not previously provided them with any documentation on official firm stationery, you may decide to decline the instructions verbally rather than by way of letter.
If you decline the instructions verbally, you should ensure that you have a detailed file note of this discussion and your concerns. You should also consider whether you have any suspicions which require a report to the serious organised crime agency.