Money Laundering

Money Laundering

1. Suspicious?

   • Report to firm's Money Laundering Reporting Officer (MLRO)
     • If decides to proceed
       • Report to National Crime Agency (NCA) using a Suspicious Activity Report (SAR)
         • Whilst matter is with NCA, the solicitor must not:
           • 1. Without the consent of NCA, continue with the transaction for a period of 7 working days from the working day after the SAR was submitted to NCA
             • 2. Disclose to the client, beneficial owner or any other party that a SAR has been made, referred to as 'tipping'
               • 3. Take any action or do anything which would prejudice an investigation under the Proceeds of Crime Act 2002 or Terrorism Act 2000

2. Penalties for allowing the firm to be used for money laundering or failing to abide by the reporting duties or breaching disclosure

   • A custodial sentence of up to 5 years and/or an unlimited fine
   • Referral by the LSS to SSDT as a breach of professional standards and the possible penalties that the SSDT can impose are:
     • 1. Warning
       • 2. Fine
         • 3. Restriction on practising certificate
           • 4. Suspension for a period of time from practising
             • 5. Struck off the Roll of Solicitors permanently
   • Civil action can also be taken against the firm for recovery of any money which they received which was proceeds of crime