Act may hand clients money laundering reports

Solicitors have expressed alarm over reports this week that the Data Protection Act 1998 requires firms to disclose to clients internal memos which voice suspicions of money laundering.The Act requires reports made by lawyers to their internal money laundering reporting officer (MLRO) to be considered on a case-by-case basis for disclosure to clients who request them, senior officials at the Information Commissioner's office said this week.Responding to a clarification sought by legal training company 2Ends, thecommissioner's office said that where such reports are passed by MLROs to the National Criminal Intelligence Service, there may be public interest protection under section 29 of the Act fromdisclosing the reports to clients who ask to see them.

But this protection does not extend to other reports, which must be considered individually for disclosure, it said.Louise Delahunty, chairwoman of the Law Society's money laundering and serious fraud task force, said: 'I'm surprised by the remarks of the Information Commissioner.

Section 29 of the Data Protection Act should provide a reason to refuse access to clients, and firms have to be extremely careful about the tipping-off offence.

I shall urgently seek clarification from government on this issue.'Robin Fry, director of 2Ends, said: 'If the new money laundering laws are to work, then fee-earners must trust that they can share their uncertainties, in confidence, with the partner appointed as MLRO.'