Minister sounds warning over money laundering

A Home Office minister last week claimed that if he were a criminal laundering money, he would choose solicitors as the conduit.

In a strong message to the profession, Bob Ainsworth told a seminar convened for lawyers that new money laundering provisions under the Proceeds of Crime Act will be harder on the profession, which should have safeguards in place and should report more suspicions.

Mr Ainsworth said: 'The number of suspicious transactions [notified by] the legal profession is very low indeed.

It simply cannot be a reflection of the genuine occasions that exist.

We do expect to see that there will be a substantial increase in suspicious transaction reports from the legal profession.'

He noted that most money laundering reports come from the banking sector, which already faces substantial anti-money laundering regulation.

He added that if he were a criminal laundering money, 'I would be getting my solicitors to invest it for me'.

Louise Delahunty, a partner with London-based fraud firm Peters & Peters and chairwoman of the Law Society's money laundering and serious crime task force, said later: 'The type of work carried out by the banking sector is different in nature from work undertaken by solicitors.

There is no independent verification of what would be the "right" number of reports from solicitors.'

However, she added: 'The Act and the Second EU Money Laundering Directive increase obligations and widen the regulated sector to include more solicitors.

This may lead to an increase in reports.'

See Feature, (Gazette [2003] 13 March, page 20)

Jeremy Fleming