News

Welcome to the July 2007 issue of Gatekeeper, the Law Society's update on anti-money laundering issues affecting the profession.

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UK money laundering news
European and international news
MLRO focus

UK money laundering news

UK regulations reach final stage

The final Money Laundering Regulations 2007 are expected to be laid before Parliament in the coming weeks, after a process of refinement by HM Treasury.

Beneficial ownership
The Law Society has reviewed the amended definition of beneficial ownership, and suggested some minor changes, which Treasury assure us will be resolved in the final draft. Aside from these points, we are satisfied the new definition provides clarity and proportionality.

Home information packs
Treasury confirmed preparation of a HIP will not be subject to the ML regulations, as it's a preparatory stage to marketing a property, not assistance in the planning of a property transaction.

Read a letter from Law Society president Fiona Woolf to Ed Balls (PDF, 62kb)
Read a letter from Ed Balls to Law Society president Fiona Woolf (PDF, 115kb)

A link to the draft regulations will be available on www.moneylaundering.lawsociety.org.uk

In September 2007, the Law Society will issue new, re-written information on compliance.

Get legal advice on money laundering compliance

The Law Society has launched an online directory of solicitors who practise in anti-money laundering (AML) compliance for solicitors needing legal advice in this area.

View the online directory

To register as a provider of legal advice on this directory, or to give feedback on the service, e-mail: antimoneylaundering@lawsociety.org.uk.

SOCA provides SARs feedback

The SOCA website now details how suspicious activity reports are assisting in the fight against organised crime. The SARs have been anonymised and to date there are only five case studies. However, it is a positive step towards giving feedback to the regulated sector.

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EU and international news

Law Society enters dialogue with EU on money laundering

The Law Society's Brussels office hosted round table discussions in Brussels on the implementation of European money laundering directives, in association with Anti-money laundering Europe and the City of London Corporation.

The event, chaired by Peter Skinner MEP, enabled the regulated sector to share views on the practical effects of the directives with members of the European Parliament, European Commission and permanent representatives of a number of member states. It focused centrally on the disjointed implementation of the second directive and how lessons learned could assist the implementation of the third directive.

Law Society speakers included chief executive Des Hudson, the chair of the Law Society's Money Laundering Taskforce and the anti-money laundering policy adviser.

The Society highlighted the following issues in particular:

• The importance of common law trusts and why unique aspects of national legal frameworks must be considered from the beginning of drafting directives, and during implementation workshops.
• Member states that don't fully implement the new reliance provisions in the guidance will suffer a competitive disadvantage.
• The need for a greater focus on co-operation between law enforcement and the regulated sector, rather than an emphasis on coercive penalties.

Representatives from the Society of Trust and Estate Practitioners (STEP) addressed the myths surrounding money laundering risks and trusts, and the British Bankers Association (BBA) outlined the usefulness of the risk-based approach when conducting due diligence on existing clients and dealing with politically exposed persons.

Belgian Bars: decision

The European Court of Justice has confirmed that the inclusion of lawyers in the ambit of money laundering directives does not prevent a client from obtaining a fair trial, provided legal professional privilege is protected. The long awaited decision in the Belgian Bars case was delivered on 26 June 2007. It does not represent a change in the law for UK lawyers.
Read the full decision

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MLRO focus

SOCA legal sector seminar

Receive updates on the SARs regime and what law enforcement is currently doing in the area of money laundering.

The seminar is on 14 August 2007 at the Law Society offices at Chancery Lane, from 1400-1600, with registration commencing at 1330.

Numbers are limited, so reserve your place by e-mailing fiudialogue@soca.x.gsi.gov.uk.

Autumn AML training

The Law Society will be running training on the Money Laundering Regulations 2007 from 24 September 2007 around the UK. Full details of the events will be announced soon.

Keep your details up to date
If your contact details have changed since the last edition of Gatekeeper, please contact antimoneylaundering@lawsociety.org.uk.

Online reference area
www.ml.lawsociety.org.uk

Professional conduct issues
For advice on issues of professional conduct, contact the Solicitors Regulation Authority on 0870 606 2577. They do not provide legal advice.

Money laundering good practice
On 1 July 2007, the Solicitors Regulation Authority issued the Solicitors' Code of Conduct 2007, superseding the previous Practices Rules and the Guide to the Professional Conduct of Solicitors, and marking a shift to principles-based regulation. The Law Society considers that the money laundering guidance continues to be useful for solicitors as good practice. It has ceased to be guidance given by the regulator. For guidance from the regulator on conduct issues, contact the SRA.
Read Law Society good practice

General enquiries on the Law Society's anti-money laundering policy work and services to MLROs should come to antimoneylaundering@lawsociety.org.uk.

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Contributions to Gatekeeper, letters and feedback

We welcome your comments and feedback and our editorial team is happy to consider articles for publication that may be of interest to solicitors.
E-mail: antimoneylaundering@lawsociety.org.uk.

Editorial team:
James Richards, web content editor
Emma Oettinger, policy adviser, anti-money laundering

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