The Law Society's serious fraud and money laundering task force has been in liaison with the Court Service about the practice of defence solicitors holding bail securities in their client accounts.

This practice has raised serious money-laundering concerns.

The Court Service has now directed all justices' chief executives that the practice of solicitors holding bail securities must cease, irrespective of the monetary value of the security.

In addition, all justices' chief executives must take reasonable steps to retrieve any bail securities currently being held by solicitors.

When accepting security monies, courts will require documentary evidence of identification from those providing the bail security, including confirmation of their residential address.

If it is anticipated that ultimately the security may be repaid to a third party, details of that third party's name and address, and preferably also the third party's bank details, will be required by the court.

Generally, magistrates courts must place any bail security of more than 1,000 into a separate deposit account, and any interest earned must be paid to the legitimate recipient of the repayment.

In limited circumstances, Crown Courts can also order that defence solicitors hold bail securities, and therefore the task force is now working with Crown Courts on this practical issue.

Any defence solicitors encountering difficulties with a court refusing to accept a security should refer to Audit Bulletin 10, Receipt and Treatment of Bail Securities, issued by the Court Service and available from professional ethics, tel: 0870 606 2577.