Red alert on money laundering terrorist fears

Law firms are being urged to check their records for transactions involving suspects linked to the terrorist attacks on the US, amid fears that they could be connected to money laundering.The warning came after US President George Bush issued an order freezing the assets of 26 individuals and organisations, including prime suspect Osama bin Laden and extremist Islamic groups.The Financial Services Authority said firms should be checking their records against the list (see www.treas.gov/ofac).

Carol Sergeant, its managing director of regulatory processes and risk, said: 'Under money-laundering and anti-terrorism legislation, firms need to ensure that all necessary suspicious transactions have been reported to the National Criminal Intelligence Service in the usual way.'Alison Crawley, the Law Society's head of professional ethics, said that although high street firms are unlikely to be affected, City law firms which work in the Saudi Arabia area or those acting on oil deals should be extra vigilant.In response to the attacks, Law Society chief executive Janet Paraskeva has written to all solicitors to warn them of the problem of money laundering in general.

The Society has set up a new 'Red Alert' hotline (tel: 01926 431671 or e-mail: redalert@lawsociety.org.uk) for those wanting to report concerns, and will issue a revised money laundering warning card.Ms Paraskeva explained: 'We will [foil money launderers] by making sure solicitors are alert to the dangers, aware of their obligations and can easily warn the authorities if they have suspicions.' Society president David McIntosh made it clear that penalties for solicitors who do not back the fight against money laundering will be harsh.

'We are warning any solicitor who knowingly gets involved in money laundering that we will bring their career to the earliest possible conclusion,' he said.Paula Rohan