By Anita Rice


The government looks set to step back from proposals to introduce a new 'absolute' tipping-off offence within the Proceeds of Crime Act 2002 (POCA), following intensive lobbying by the Law Society, the Gazette has learned.



Chancery Lane wants to retain the legal professional privilege (LPP) exception allowing solicitors, in certain circumstances, to disclose to a client that a money laundering report had been made about them or a third party. The Home Office has sought to remove the LPP exception to bring domestic legislation in line with the third EU money laundering directive - due to be implemented next month.



The Society believes absolutely prohibiting anyone in the regulated sector from revealing a report has been made, regardless of whether it could prejudice an investigation or took place in connection with legal proceedings or giving legal advice, would unnecessarily constrain solicitors' ability to properly advise clients.



Robin Booth, partner with BCL Burton Copeland and chairman of the Society's money laundering task force, said: 'It seems likely the existing section 333 [of POCA] will go... and the provision on the likelihood of prejudicing an investigation will be back in the draft replacement section that will apply only to those working in the regulated sector.



'It is important for lawyers to be able to advise their clients - this is an issue about access to justice and to expert legal advice. It is right to put this exception back in, as the whole point of the offence should be to prevent investigations being prejudiced.'



However, there are concerns that the wording in the new section 333 of POCA will no longer cite professional privilege as a statutory defence.



Law Society President Andrew Holroyd said: 'The Law Society maintains that LPP is non-negotiable and we are pleased that the practical effect of our lobbying is that solicitors will still be able to give legal advice as long as it doesn't prejudice an investigation.'



The Home Office said it will finalise the regulations 'in due course'.

l Go to www.lawsociety.org.uk/moneylaundering