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 Anti money laundering and counter-financing of terrorism legislation, in the past four years, has seen wide ranging changes. The Money Laundering Regulations 2007 are now in force and compel firms to implement effective systems and controls.
This page has been developed to assist firms and their MLRO’s in keeping up to date with the latest guidance, updates and relevant news. Check it regularly. As practising solicitors, Legal Risk provide practical AML advice to law firms and professional practices. We are particularly aware that the practicalities of day to day compliance can be complex and time consuming. Some of the services we provide are:
• Drafting or reviewing AML policy and procedures For further information, email Sue Mawdsley or telephone her 0845 330 6791.
L A T E S T M O N E Y L A U N D E R I N G N E W S Financial Risk Outlook 2008 - key risk areas present in the current business environment Financial Crime Conference 2008 - speech by FSA's Chief Executive SOCA reports UK Threat Assessment 2008- 9 > SOCA assessment of the threats posed to the UK by serious organised criminals and a consideration of how these threats can develop. Annual Report 2007-8 > Second annual progress report. Letter to the Times > SOCA's response to an inaccurate article published in the Times on 13 May 2008. Money Laundering and Terrorist Financing through the Real Estate sector This FATF report explores the means by which illicit money is channelled through the real-estate sector to be integrated into the legal economy >> Anti-money laundering - equivalent jurisdictions HM Treasury has issued a list of countries currently considered as having equivalent AML/CFT systems to the EU. However, the Law Society and the Treasury warn that solicitors should continue to apply risk based procedures when dealing with clients in these jurisdictions. The list includes: Argentina, Australia, Brazil, Canada, Hong Kong, Japan, Mexico, New Zealand, Russian Federation, Singapore, Switzerland, South Africa and the US. More details >> Airing Dirty Laundry An update on anti money laundering developments. Article written by Frank Maher for Property in Practice, Mar 2008 >> Merger of Assets Recovery Agency and SOCA The two organisations merged as from 1 April 2008. See press release > FATF Terrorist Financing Report This study examines the means used by terrorists to raise funds and the wide variety of methods used to move money within and between organisations. The adaptability and opportunism shown by terrorist organisations suggests that all the methods that exist to move money around the globe are to some extent at risk >> Mortgage Fraud Practice Note The Law Society practice note on mortgage fraud is in force from 18 March 2008 and replaces the Green Warning Card >> Police intelligence report on mortgage fraud ACPO press release on commitment to tackling mortgage fraud >> HM Treasury warns of higher risk of money laundering and terrorist financing The heightened risk should be taken into account and increased scrutiny and due diligence should be applied to transactions associated with these jurisdictions identified >> Law Society Practice Note UPDATED The Law Society has updated practice note in force from 22 February 2008 with advice on the recent changes to tipping off offences >> The practice note replaces the version issued on 17 December 2007. For help with updating your compliance procedures contact us.
Amendment to Tipping Off offences The Terrorism Act 2000 and Proceeds of Crime Act 2002 (Amendment) Regulations 2007 come into force on 26 December 2007. The government has held back from its original proposal to remove the 'prejudice' test. The sentence is reduced to two years. Property fraud - guidance The Land Registry says there is a growing number of cases of fraudsters transferring property ownership into their names. It has issued two new guides for the public with advice on how to avoid getting caught out. - Safeguarding against property fraud >> - Identity checks >> Mortgage Fraud speech Keynote speech by Philip Robinson, FSA >> MORTGAGE FRAUD WARNING The Law Society issued a new warning on mortgage fraud on 12 December 2007 as a result of the recent slowdown in the property market. >> Home Office Consultation on Consent Regime The Home Office issued a consultation paper on 13 December 2007, responses due by 11 March 2008. >> JMLSG Guidance approved by HM Treasury The JMLSG Guidance, revised to reflect changes brought about by the MLR 2007, was approved by HM Treasury on 18 December 2007. >> Fixed-price packages for new Anti Money Laundering procedures Legal Risk can help you review your procedures for a fixed fee. For most firms this will cost between £1750- £2250 plus VAT depending on whether their exisitng procedures comply with the current legislation. For larger firms with more complex requirements, including international practices, we can also provide quotations. Terms apply. For further information contact us.
Risk-based approach: Pricewaterhouse Coopers survey PwC Anti-Money laundering Survey finds that 82 per cent of institutions have not achieved any cost benefits from adopting a risk-based approach to compliance. >>
FATF Guidance FATF Guidance on the risk based approach to combating Money Laundering and Terrorist Financing >> See also - FATF assessment of the implementation of anti-money laundering and counter-terrorist financing standards in the UK >>
Money Laundering Regulations 2007 The regulations came into force on 15 December 2007. Firms must update their practices to ensure they are compliant with the new legislation if they have not already done so. View For help with updating your compliance procedures contact us.
Law Society Anti-Terrorism Practice Note Law Society note on the conflicting duties of maintaining client confidentiality and reporting terrorism 19 July 2007. >>
Fraud offences An overview of the Fraud Act 2006 is contained in the following PowerPoint presentation from the Economic Crime Department of the City of London Police >> Client care letters and terms of engagement The Law Society have provided approved paragraphs on firms' money laundering policies which may be adapted for use in client care letters or terms of engagement >> EU Second Money Laundering Directive Commission Report on the impact of the second ML directive: Law Society comments >> City of London Report: The British Institute of International and Comparative Law (BIICL) examines the comparative implementation of the EU Second Money Laundering Directive. - Executive Summary (280kb) >> Full Report (846kb) >> Money Laundering FAQs The Law Society have produced a helpful list of Frequently Asked Questions in order to help solicitors and their staff understand their money laundering obligations. The Law Society have withdrawn their dedicated Money Laundering Helpline. For advice on money laundering problems calls us on 0845 330 6791 or email us. Money Laundering warning for Personal Injury Lawyers Reports that police arrested ten people and seized £1,000,000 as part of an investigation into a gang that has allegedly been staging bogus road accidents to defraud insurance companies provide a strong message to litigation lawyers that the principal money laundering offences apply to them with full force. For more details, see press release. SAR confidentiality MLROs who are concerned about apparent / suspected breaches in their SAR disclosures should ring the SOCA hotline 0800 234 6657 to report their concerns. The Law Society advises that it is important that these breaches are reported because SOCA has promised to provide statistics in an annual report about the number of breaches. ICAEW Technical Release: Confidentiality of Money Laundering suspicions - Sept 2006 The ICAEW issued a briefing on the prevention of disclosure of the identity of those making Suspicious Activity Reports - a continuing concerned expressed by practising accountants >> Solicitors convicted of failing to report money laundering Solicitor Philip Griffiths was sentenced to 6 months imprisonment for failing to report money laundering when objectively there were reasonable grounds to suspect it More > Mr Griffiths spoke of the ‘injustice’ he has received. More > The transcript is available to Lawtel subscibers - click here. Brian Dougan allowed £66,000 to pass through his client account while carrying out conveyancing work for a convicted criminal. More > Article on these cases by Sue Mawdsley in the Law Society's Gatekeeper newsletter - view. Further articles on money laundering can be found on News & Events page - Articles & Features. Third EU Money Laundering Directive
Commission Directive (2006/70/EC) - adopting level 2 technical measures implementing the Third Money Laundering Directive
Third Money Laundering Directive (2005/60/EC) - came into force on 15 December 2005 and member states must implement its provisions by 15 December 2007. Client Identification - electronic checks
An interesting article on the subject was published in the Gazette by two members of the Law Society’s Money Laundering Task Force >>
FATF Money Laundering and Terrorist Financing Typologies
This report studies the trends associated with money laundering, for which the data plays a key role in setting anti money laundering and terrorist financing policies >>
Model Terms of Client Engagement ... to try and mitigate potential liability - we supply 17 terms covering a variety of problem money laundering areas. Terms apply. Contact us for further details. Press articles and features Frank Maher and Sue Mawdsley have written a number of press articles on money laundering. Go to News & Events page to view. MONEY LAUNDERING CASES R v NW and others This case considers whether the Crown must prove what type of criminal conduct generated the benefit represented by criminal property in money laundering cases. [2008] EWCA Crim 2 Transcript >> R v Green [2007] EWCA Crim 1248 Transcript >> UMBS v SOCA [2007] EWCA Civ 406 Transcript (2 May 2007) >> See also earlier decision of 21 Mar 2007 >> Hogan v DPP [2007] EWHC 978 (Admin) Transcript available to Lawtel subscribers >> R v I K [2007] EWCA Crim 491 Lawtel summary >> Transcript >> Assets Recovery Agency v Olupitan and another [2007] EWHC 162 (QB) Transcript >> Court of Appeal judgment [2008] EWCA Civ 104 >> Assets Recovery Agency v John and another [2007] EWHC 360 (QB) Lawtel summary >> Lawtel subscribers can access the full text here >> R v Gabriel [2006] EWCA Crim 229 Lawtel summary >> Transcript >> R v Da Silva [2006] EWCA Crim 1654 Lawtel summary >> Transcript >> Barlow Clowes International Ltd v Eurotrust International Ltd [2005] UKPC 37 Lawtel summary >> Transcript >> Abou-Rahmah and others v Abacha and others [2006] EWCA Civ 1492 Transcript >> K Limited v National Westminster Bank and others [2006] EWCA Civ 1039 Transcript >> R v Liaquat Ali, Akhtar Hussain and Mohsan Khan Shahid Bhatti [2005] EWCA Crim 87 Transcript >> Squirrell v National Westminster Bank [2005] EWHC 664(Ch) Lawtel summary >> Lawtel subscribers can access the full text here >> Bowman v Fels >> P v P >> Tayeb v HSBC >> Bank of Scotland v A Limited >> C v S >> R v Montila >> Links for identification of companies - London Stock Exchange list of companies >> - Worldwide Companies Registries (link via Companies House) >> - EU list of regulated markets under MiFiD >> Law Society Money Laundering Newsletters
Issue 13 Sep 2007
Issue 12 Jul 2007 Issue 11 Jun 2007 Issue 10 May 2007 Issue 9 Apr 2007 Issue 8 Mar 2007 Issue 7 Feb 2007 Issue 6 Dec 2006 Issue 5 Oct 2006 Issue 4 Aug 2006
- The Money Laundering Regulations 2003 >>
- Proceeds of Crime Act 2002 >> - Annotated amendments to POCA >> - The Proceeds of Crime Act 2002 (Money Laundering: Exceptions to Overseas Conduct Defence) Order 2006 - which excludes from the reporting obligations certain acts which did not constitute crimes in overseas jursidictions >> - Serious and Organised Crime and Police Act 2005 >> - Terrorism Act, sections 15-18 >> - Terrorism Act, amended section 21A (inserted by the Anti-terrorism, Crime and Security Act 2001, s.3, Sch 2, Pt 3, para 5(1), (2)) >> - The Terrorism Act 2000 and Proceeds of Crime Act 2002 (Amendment) Regulations 2007 >> EU - Third EU Money Laundering Directive >> - Commission Directive adopting level 2 technical measures implementing the Third Money Laundering Directive >> - Regulation on information on the payer accompanying funds transfers>> - Regulation on controls of cash entering or leaving the Community >> Law Society good practice
Other guidance now replaced by the above -
- Law Society Practice Note published on 17 December 2007 >> - Law Society Draft Practice Note in force from 3 September 2007 to 13 December 2007 >>
- Law Society Guidance on SOCPA amendments to POCA >>
- Guidance for Company/Commercial Solicitors >> - Guidance for Conveyancing Solicitors >> - Guidance on private client work >> - Guidance on P v P (overruled by Bowman v Fels) >> - Guidance on Bowman v Fels >> - Money Laundering Pilot Guidance 2004 >> Other guidance and resources
- Financial Sanctions :
Consolidated list of targets listed by the UN, EU and UK under legislation relating to current financial sanctions regimes. - Latest Financial Sanctions Notice: 16.07.08 Terrorist Financing >> - Financial Sanctions List - last amended 16.07.08 >> - Assets Recovery Agency >> - CIA World Leaders (Politically Exposed Persons - 'PEPs') >>
- FATF (Financial Action Task Force) guidance >> - FSA Handbook >> - HM Treasury guidance on AML and the Data Protection Act 1998 >> - HM Treasury anti money laundering strategy >> - JMLSG money laundering guidance: revised Nov 2007 >> - JMLSG (Joint Money Laundering Steering Group) >> - Law Society Money laundering page: guidance, news and links >> - SOCA -Serious Organised Crime Agency >> - SOCA -Guide to completing Suspicious Activity Reports (SARs) >> - SOCA -SAR online reporting system >> - Transparency International Global corruption perceptions index 2005 >> - US Treasury list of specially designated nationals & blocked persons >> Guidance for other professions and jurisdictions
- The Bar Council Guidance on Money Laundering Regulations >>
- The Bar Council Guidance on POCA 2002 - revised January 2008 >> - ICAEW - The Institute of Chartered Accountants England & Wales >> - ICAEW - guidance on privilege >> - ICAEW - confidentiality of money laundering suspicions >> - CCAB guidance >> - The Chartered Institute of Taxation & the Association of Taxation Technicians >> - Auditing Practices Board - interim guidance for Auditors (revised) >> - Royal Institution of Chartered Surveyors (RICS) >> - Council for Licensed Conveyancers guidance note >> - The Institute of Legal Cashiers & Administrators >> - Law Society of Scotland >> |
