Firms carrying out 'relevant business' are required to obtain satisfactory evidence of the identity of clients with whom they form a business relationship on or after 1 March 2004.

Identification evidence must also be obtained from clients for whom solicitors undertake one-off transactions involving 'relevant business' on or after 1 March 2004, if the transaction involves 15,000 or more.

The identification obligations also apply when two or more one-off transactions are linked and involve a total of 15,000 or more, or where there is knowledge of suspicion of money laundering, regardless of the amount of money involved in the one-off or linked transactions.

If the solicitor is unable to obtain satisfactory evidence of identity, the business relationship or one-off or linked transactions must not proceed.

There is a limited number of exceptions where checking client identity is not required.

The Law Society's pilot guidance at chapter 3 contains important information about these exceptions (available at www.lawsociety.org.uk).

It also contains guidance on the record-keeping requirements under the money laundering regulations, including the requirement to keep records of identification documents and details of transactions for five years.

Establishing the identity of clients who are private individuals involves obtaining evidence that is reasonably capable of establishing (and does in fact establish to the satisfaction of the person obtaining it) that clients are the people they claim to be.

The Law Society's pilot guidance 2004 lists examples of documentary evidence of personal identity and gives advice on special situations.

- The Law Society's professional ethics team provides a confidential advice service for solicitors and their staff about professional conduct rules including money laundering, tel: 0870 606 2577, from 11am to 1pm and 2 to 4pm).