The Law Society is lobbying the government to ensure that simply preparing home information packs (HIPs) is exempted from money laundering regulations.


Chancery Lane has voiced concern that application of the regulations to HIPs would require solicitors to undertake client due diligence checks prior to preparing the packs. This would cause added cost and delay, it said. Solicitors would also be at a competitive disadvantage if non-solicitor HIP-providers are not covered by the regulations. HIPs become mandatory in England and Wales from the beginning of June.



The Society's money laundering task force said application of the regulations would be 'disproportionate and unreasonable' and would add a 'completely unnecessary layer of bureaucracy to an already complicated process'. It added that money laundering was not relevant to providing a HIP because neither the transfer of funds nor property was involved.



Law Society Deputy Vice-President Paul Marsh said: 'It's another case of the government gold-plating everything without considering the practicalities.'



When a seller markets their home, the only money changing hands is for the HIP, added Mr Marsh. Client due diligence checks should not be needed until the solicitor is instructed on the substantive conveyancing transaction.



A Treasury spokeswoman said: 'We are aware the Law Society has put this issue into its response to the money laundering regulations consultation and we are considering this.'



Catherine Baksi