NCIS slams lawyers for lack of fraud awareness

SUSPICIOUS TRANSACTIONS: solicitors refer only 1% of total

The National Criminal Intelligence Service (NCIS) last week blasted professionals - including solicitors - for their failure to ensure that their clients are honest people dealing with legitimate funds.

Suspicious transactions reports soared to 31,251 last year, up 13,000 from 2000.

But only 1% of the total was referrals from solicitors, the lowest figure for three years.

Even fewer were from accountants - 0.35%.

Jon McNally, head of the NCIS economic crime branch, warned that police would use new laws - such as the Proceeds of Crime Act - to prosecute lawyers and accountants who turn a blind eye to corrupt activity.

He said: 'In other areas [involving finance], risk managers look out for the possibility of money laundering.

I'm not aware that this happens in the legal profession.

Lawyers keep very much to themselves.' NCIS assesses reports from financial institutions and decides whether they should be passed to the police.

The Law Society said it had issued advice to firms earlier this year about improving suspicious transaction disclosures.

A spokeswoman said: 'I have no doubt that some City firms are being used by money launderers.

But there isn't a huge number of solicitors out there trying to suppress information.

Money launderers are clever people.

They tend to be very good at looking normal and providing convincing stories about where their money has come from.'

She said the Law Society is confident that reporting will increase as firms become more diligent.

Jeremy Fleming