SOLICITORS PUT ON RED ALERT FOR OBJECTIVE TEST IN MONEY LAUNDERING OFFENCES

LEGISLATION: Suspicions of money obtained from any crime must be reported under Bill

Law Society chief executive Janet Paraskeva has sent anti-money laundering guidelines to all solicitors, in anticipation of the Proceeds of Crime Bill being implemented.

The legislation will require solicitors to report suspicions of money obtained from any crime, rather than the proceeds of drug trafficking or terrorism as at present.The Bill creates a test for money laundering offences, replacing the need that lawyers must have actual suspicion of the offence with the question of whether it was reasonable for a solicitor in that position to have suspicion.The Second European Money Laundering Directive - which must be implemented by spring 2003 - extends those activities of firms covered by anti-money laundering provisions, for example, into conveyancing matters.The letter also invites solicitors to attend a series of associated awareness-raising roadshows.

These are organised in partnership with London fraud firm Peters & Peters.The Council of the Bars and Law Societies of Europe (CCBE) has issued action points for all member states to ensure consistent implementation of the directive, but uncertainty remains over tipping-off provisions.The UK's Information Commissioner recently suggested that the Data Protection Act 1998 requires firms to disclose to clients internal memos which voice suspicions of money laundering, where such memos are not sent to the National Criminal Intelligence Service (see [2001] Gazette, January 24,1).Louise Delahunty, a Peters & Peters partner and chairwoman of the Law Society's money laundering and serious crime task force, said that the task force was currently considering the matter.

l The roadshows will take place in: Leeds (14 February), London (14 March), Taunton (21 March), Preston (4 April), Cambridge (18 April), and Cardiff (2 May).

Tickets cost 25 and are available from Law Society regional offices.Jeremy Fleming