From the Law Society's money laundering and serious fraud task force

Over recent years, the Law Society's money laundering and serious fraud task force has had regular meetings with the government and the National Criminal Intelligence Service (NCIS), and through roadshows and seminars has heard solicitors' concerns about reporting.

The Proceeds of Crime Act 2002 (POCA), implemented on 24 February 2003, updates the money laundering reporting regime and imposes a clear timetable for a response from NCIS.

Careful presentation of reports can assist both NCIS and solicitors, especially if 'appropriate consent' is required in accordance with section 335 of POCA.

A firm's money laundering reporting officer will usually be the appropriate person to make a report and deal with any subsequent contact from NCIS or a law enforcement agency.

Update on making reports:

- The duty desk of the economic crime branch of NCIS cannot give advice about whether the legislation requires reports in any given situation.

Solicitors worried about their obligations should obtain general guidance from the Law Society's professional ethics department (tel: 0870 606 2577), or seek specialist legal advice.

- Reports must be made to the duty desk of the economic crime branch in writing, not over the telephone.

Reports can be posted or faxed to the Economic Crime Branch, the National Criminal Intelligence Service, Economic Crime Unit, PO Box 8000, London SE11 5EN; fax: 020 7238 8286.

- It is helpful to telephone the NCIS duty desk to let it know that a disclosure is about to be made, and the basis for the disclosure.

This can be particularly helpful where solicitors are seeking 'appropriate consent'.

- Reports can be made by letter or by using the NCIS standardised reporting form, available from www.ncis.co.uk/disclosure.asp.

Typing reports can help with legibility, and therefore speed of response.

- A compulsory reporting form may be introduced by the Home Office.

If so, it will be available from the NCIS and Law Society Web sites.

- Reports should include as much information as possible about the suspected person or organisation, for example, full name, address, telephone numbers, passport details, date of birth.

- Persons making reports should also include their own contact details.

- NCIS has been known to reject reports in which a reason for suspicion has not been provided.

In explaining reasons for suspicion, solicitors may include an explanation of the background to the retainer, making it clear who the suspected person or organisation is, and why there are suspicions surrounding them.

Taking time to set out clear reasons should help the NCIS respond more quickly.

- It is not necessary, or always possible, to provide details about the underlying criminal behaviour that lead to the dirty money or property.

However, if there are suspicions about a certain type of criminal activity, these can be explained in the reasons for suspicion section.

- If known, providing details of any account in which suspected funds are currently held, or description of the criminal property and estimated value, can be helpful.

The suspected funds may be held in a solicitor's own client account.

- If a solicitor wishes to carry out a transaction that would otherwise be a 'prohibited act' under one of the money laundering offences in sections 327, 328 or 329, and so requires 'appropriate consent' under section 335 of the POCA, this should be made clear early in the report itself.

It would also be prudent to make this clear on a fax header sheet.

This is particularly important where appropriate consent is required earlier than the end of the notice period (seven working days starting the day after a report has been made).

Clear information about any timetable should also be included, for example, completion date for a conveyance, or a court deadline.

It can also be helpful to provide the NCIS with an explanation of the relevant legal process.

- If relevant, include in reports why the confidentiality of the reporting party, and/or the contents of the report itself, is important.

Solicitors who fear reprisals of any type if the information were to be revealed, should explain why.

- It is inappropriate to include general comments about the money laundering legislation in reports.

- Firms that anticipate making more than 200 reports a year may like to consider subscribing to the NCIS Moneyweb IT system, which allows reports to be submitted electronically.

Additional details about Moneyweb can be obtained from the NCIS Money web team, tel: 020 7238 8280/2888/3681.

Solicitors are often concerned about whom they can tell that they have made reports, or are contemplating doing so, without risking committing a 'tipping-off' offence under the POCA.

This can be particularly difficult if the type of case the solicitor is acting in requires full disclosure to opponents and/or the court.

Solicitors need to be aware of both the tipping-off offence under section 333 and the offence of prejudicing an investigation under section 342 of the POCA.

NCIS has recently issued a position statement on its Web site about this subject, available at: www.ncis.co.uk/ legaldisclosures.asp.

The Law Society is considering this statement and whether any further information or clarification would be helpful for solicitors.

Solicitors unsure about how to balance their obligations should seek specialist legal advice.