Money laundering—key information for law firms
Money laundering—key information for law firms

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Money laundering—key information for law firms
  • Definitions of money laundering
  • Stages of money laundering
  • Legal framework
  • Application of the anti-money laundering regime
  • Why is anti-money laundering important to legal professionals?

UNDER REVIEW: The SRA published it’s long awaited risk assessment required under Regulation 17 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 on 2 March 2018, for further information see Practice Note: SRA AML and counter-terrorist financing risk assessment. Alongside the risk assessment, the SRA also published:

  1. ethics guidance (which importantly is separate from, and differs in places to the Legal Sector Affinity Group Anti-Money Laundering Guidance for the Legal Sector)

  2. a warning notice—see News Analysis: SRA—AML warning notice issued

  3. its thematic review—Preventing Money Laundering and Financing of Terrorism

In early March, HM Treasury approved both the Legal Sector Affinity Group Anti-Money Laundering Guidance for the Legal Sector and the Joint Money Laundering Steering Group guidance.

As a result of the above we are reviewing our content.

The Proceeds of Crime Act 2002 (POCA 2002), the Terrorism Act 2000 (TA 2000) and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 have a profound effect on legal professionals. Failure to comply carries heavy criminal, administrative and professional penalties.

The MLR 2017 came into force on 26 June 2017.

Definitions of money laundering

Money laundering is the process through which proceeds of crime, and their true origin and ownership, are changed so