News
Gatekeeper 6: anti-money laundering newsletter
Tuesday 12 December 2006
Welcome to the December 2006 issue of Gatekeeper, the Law Society's update on anti-money laundering issues affecting the profession.
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UK money laundering news |
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Money laundering the most important regulatory issue In a recent survey, solicitors told us that money laundering is the most important regulatory issue for them. Regulation and representation of solicitors are now separate. The Law Society is your representative body, and the survey told us how best to represent the profession to government and the regulator. New investigatory powers under SOCPA New mechanisms created by the enactment of the Serious Organised Crime and Police Act 2005 are for the first time being used by the government's Serious and Organised Crime Agency. Properly used and enforced this penalty will help to deter convicted fraudsters and may even assist in finding hidden assets. Third Money Laundering Directive – Law Society’s response In October 2006, the Law Society responded to the Treasury's consultation on implementing the Third Money Laundering Directive. we continue to encourage legislators to adopt a risk-based approach ensuring further burdens placed on solicitors in complying with money laundering regulations are proportionate and reasonable. Absolute obligation The Criminal Court of Appeal recently reduced the sentence of a solicitor sentenced to 15 months imprisonment for failing to disclose to the authorities that he knew or suspected that a money laundering offence was taking place. But the court stressed the nature of a solicitor's obligation. Online money laundering The Financial Action Task Force (FATF) has examined the way in which money can be laundered through the exploitation of new payment technologies, such as prepaid cards, internet payment systems, mobile payments, and digital precious metals. Reputational risk: A return to ethics? High-level ethical principles in regulations give firms flexibility to adopt a common sense approach, rising above the benchmark of regulation, and following the example of leading banks. SARs – response to new SOCA powers The Law Society has responded to the Home Office consultation on matching suspicious activity reports submitted to the Serious Organised Crime Agency against data in a range of other departments’ databases. Limousine businesses under scrutiny Solicitors with clients in the limousine business are advised that police have recently been targeting the limousine industry and have uncovered a number of businesses being utilised as a cover for organised crime and money laundering. |
EU and international news |
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Core principles of the European legal profession agreed A charter of core principles of the European legal profession was adopted unanimously by the Council of Bars and Law Societies of Europe (CCBE), representing over 700,000 lawyers through its member bars and law societies at its Plenary Session on 24/25 November 2006. Identifying and monitoring politically exposed persons The Third Money Laundering Directive introduces an enhanced due diligence requirement to identify and manage relationships involving an international politically exposed person. Australia passes Anti-Money Laundering and Counter-Terrorism Financing Act The Australian government passed the act on its last sitting day for 2006. It's designed to ensure that Australia complies with the 40 guidelines set out by the Financial Action Task Force thereby strengthening Australia's ability to protect its financial systems from money laundering and other forms of organised crime. The Act is yet to receive royal assent. |
MLRO focus |
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MLRO meetings – November Meetings for Money Laundering Reporting Officers were held for the Kent and Surrey Regional Groups in early November. Mr Michael Calvert from the Law Society’s Money Laundering Taskforce attended and provided updates on work being undertaken by the Law Society in the general area of money laundering, as well as specific liaison with the Serious Organised Crime Agency and work being undertaken by the Financial Action Task Force. Calling all MLROs in law firms: Please ensure that the Law Society has your most up-to-date contact details by contacting antimoneylaundering@lawsociety.org.uk Online reference area www.moneylaundering.lawsociety.org.uk Helpline Contact the Professional Ethics Helpline on 0870 606 2577 for guidance on money laundering queries. This helpline does not provide legal advice. E-mail enquiries Enquires on the Law Society's money laundering guidance should come to professional.ethics@lawsociety.org.uk. General enquiries on the Law Society's anti-money laundering policy work and services to MLRO’s should come to antimoneylaundering@lawsociety.org.uk. Contributions to Gatekeeper, letters and feedbackWe have received a large number of registrations for Gatekeeper in the last three months. Thank you for this show of support. Please pass this e-newsletter to any colleagues who may be interested in its contents. We welcome your comments and feedback and our editorial team is happy to consider articles for publication and publicise anti-money laundering events that may be of interest to solicitors. Editorial team: |
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