Solicitors are considered a soft target by fraudsters and money launderers because they lend legitimacy and respectability to illegal transactions.

Although the Law Society has already issued detailed guidance on how to combat money laundering, banking instrument fraud and advance fee fraud, the following may help solicitors avoid being involved in a fraud, a scam or money laundering.General precautions to assist in avoiding potential difficulties are:-- Keep solicitor-client account details private until the appropriate time and specifically restrict its onward transmission by clients to third parties.-- Consider mentioning money laundering in an initial client care letter.

Legitimate clients will be comforted that the firm is alert to money laundering and potential fraudsters might be deterred from using the firm.

Do not be afraid or embarrassed to mention the necessity to consider money laundering legislation.

Banks and the purchase of long-term travel passes on public transport require identification procedures and clients are not usually unduly surprised by identification requirements.

A standard phrase in a client care letter may be of assistance:'For the protection of all our clients we operate a money laundering reporting procedure.

In certain circumstances, information will be revealed by us to the appropriate authorities in relation to any suspicion of money laundering.'-- Educate practitioners:-- A money laundering information pack is produced by the professional ethics division of the Law Society available free on request; telephone: 0171 242 1222.-- In addition to the Law Society's own information pack and guidance notes in the professional conduct guide,The Guide to the Professional Conduct of Solicitors, the joint money laundering steering group -- Pinners Hall, 105-108 Broad Street, London EC2N -- has issued excellent guidance for the financial sector.

Firms which are authorised to conduct investment business and even those which do not perform investment business will benefit from the guidance notes.

The notes are available from JMLSG Department, BBA, PO Box 10, Wetherby, West Yorkshire, telephone: 01937 845 381.

The guidance notes for the financial sector illustrate good practice.-- Be alert to anything unusual:-- unusual settlement requests (for example, settlement by cash or by third party cheque);-- unusual instructions (for example, no discernible reason for using your firm);-- large amounts of cash (for example, holding cash in your client account pending instructions or just to forward to a third party);-- a secretive client (one who is reluctant to give details of his identity or answer questions about the deal);-- suspect territory (for example, countries where drug trafficking or drug production may be prevalent, or where the banking systems are less sophisticated than in the UK).-- If any unusual factors give cause for concern, solicitors should explore the unusual nature with the client in order to allay concerns or ensure the transaction proceeds as normal.-- Prevention is better than cure:-- Discussing the logistics of a transaction early on is the best way to ensure that unusual factors will not arise.-- Solicitors will wish to reduce the possibility that their firm may unwittingly be involved in a money laundering transaction.

The firm and the profession risk a loss of reputation if they become involved in a money laundering transaction which can entail their firm, their client, and the investigative authorities in protracted enquiries and disruption-- If the solicitor discover funds are subsequently claimed to belong to third parties, the repercussions, for example, of constructive trusteeship, can involve the firm in lengthy court proceedings.-- Appoint a money laundering reporting officer.

The reporting officer is an effective filter to discuss issues and decide when reports should be made to the authorities.-- Consider adopting a policy.

The firm may wish to agree a policy that says sums of more than a fixed amount will not be accepted in cash unless previous authorisation is given.

In this way, should cash be offered or if cash is desirable, the circumstances can be explored in good time and the circumstances considered in advance.Confidential guidance is available to the profession and money laundering reporting officers from the guidance officers in the Law Society's professional ethics division, Ipsley Court, Redditch, Worcestershire, B98 0TD, DX 19114 Redditch; telephone: 0171 242 1222.The Money Laundering Information Pack is available from the Law Society's professional ethics division, free on request.The Fraud Intelligence Office can assist in identifying scams and frauds and is based at the Office for the Supervision of Solicitors, Victoria Court, 8 Dormer Place, Leamington Spa, Warwickshire, CV32 5AE, DX 292320 Leamington Spa 4; telephone: 0171 320 5703.