Firms may face action over Abachas missing millionsFRAUD: concerns over the reporting of suspicious transactionsLaw firms could be included in action to recover millions of pounds stolen and laundered by former Nigerian President Sani Abacha, the Gazette has been told.Dictator General Abacha stole almost 3 billion from state coffers.

After his death in a drug-fuelled orgy in 1998, the Nigerian government sought to recover the money.Enrico Monfrini, a fraud lawyer with Geneva-based Hauchmann Monfrini & Bottge, who is leading the attempts at recovery, told the Gazette: We know of law firms who got involved to help or promote the actions of criminal organisations in laundering the money.Law firms could be in breach of regulations even if they became involved unwittingly.The Nigerian government last year asked for details of Abacha accounts at British banks, but so far the requests have not been acted on because of legal technicalities.An assistant to Mr Monfrini said that ongoing actions against Swiss law firms had been based on documentation released from Swiss banks.

Once the British banks follow suit, we will be able to join law firms to the action, he said.Meanwhile, lawyers failure to report money laundering was highlighted by a report last week from the House of Commons international development committee.

It expressed concern at under-reporting of suspicious transactions by lawyers and accountants on statistics provided by the National Criminal Intelligence Service.Louise Delahunty, chairwoman of the Law Societys money laundering and serious fraud task force, said: These statistics do not mean that there is under-reporting.

We do not know how they are compiled.

The National Criminal Intelligence Service is co-operating with the Law Society to understand the specific problems that lawyers face with privilege and client confidentiality in respect of reporting obligations.See feature, page 16Jeremy Fleming