REPORTING REQUIREMENTS: NCIS's ability to respond to urgent cases under threat

Solicitors need to be careful about making reports to the National Criminal Intelligence Service (NCIS) in the face of new anti-money laundering rules in case they clog its resources and impede a fast-track clearance system, a session on money laundering heard.

Alison Matthews, Irwin Mitchell's money laundering reporting officer and a member of the Law Society's serious fraud and money laundering task force, said that 70% to 80% of reports - with requests for NCIS to give clearance - were coming from solicitors, and that they needed to consider more carefully whether the reports were necessary.

She said reports were increasing as the profession reacted to the introduction of the Proceeds of Crime Act 2002 (POCA) and in anticipation of regulations - to be introduced shortly - implementing the second EU Money Laundering Directive.

The directive will extend the class of solicitor who is required to make such reports to include family lawyers and conveyancing practitioners among others.

She said: 'It will be of no value to the profession [not to think carefully through cases] in terms of its perception by NCIS, and the government will say that we haven't stopped to think.'

Failure to be selective about making reports would damage the efficacy of NCIS's fast-track system, whereby NCIS aims to respond to lawyers' reports within 48 hours where solicitors demonstrate that cases are urgent, she added.

Denis Cameron, chairman of the Law Society's conveyancing and land law committee, told the session that reports in the conveyancing sector were causing specific problems because of cash payments.

He called for stronger avoidance measures, such as ensuring that cash for transfers arrives at law firms before the exchange of contracts, so that any reporting issues could be dealt with before completion.

Louise Delahunty, chairwoman of the task force, said: 'Defensive or "routine" reporting may result in the rejection of the report and/or the unavailability of the protection given by POCA.

This does not mean solicitors should be discouraged from making reports in proper circumstances.

The new POCA timetabled disclosure regime and the fast-track system should ensure an efficient turnaround.'

Jeremy Fleming