NCIS hotline set to relieve lawyers of negligence fears

INVESTIGATION: police have seven days to reply to report

The government has reassured solicitors that it will act to minimise delays in the police approving transactions they have reported as being suspicious amid fears that firms could face negligence claims.

Criminal justice minister Lord Falconer announced the move during the third reading of the Proceeds of Crime Bill, which is set to receive its Royal Assent this week.

He said he had recently been able to reassure Law Society representatives over the provision which gives the National Criminal Intelligence Service (NCIS) seven days to investigate a report, although it can extend this to 31 days in complex cases.

One of the concerns was over what would happen if NCIS was unable to consent to a transaction quickly and a client brought an action for negligence - for example where there was urgency in completing a conveyancing transaction.

Lord Falconer told peers: 'Although it would ultimately be for the court to decide, in our view it is highly unlikely that a company that is in dialogue with NCIS would be found negligent in those circumstances.

'Where a report is sent to NCIS and the matter is urgent, I am looking into establishing a follow-up hotline within NCIS to operate during daylight hours, so that the discloser is not left in the difficult position of neither being able to effect a transaction nor inform the client that a report has been made to NCIS.'

Lord Falconer said he recognised that 'there will inevitably be cases where consent to a transaction needs to be given' before seven days.

The Law Society said it was satisfied with the assurances.