Speed is of the essence

Clients of law firms are increasingly demanding action on their deals within hours, not weeks or days.

The speed of communication and the onus of responsibility this places on service providers is highlighted by the current Proceeds of Crime Bill.

Solicitors are going to be in the front line under the new legislation once it receives Royal Assent this week, as they will be obliged to report to the authorities client instructions which could involve potential money laundering.

The profession's delicate position was highlighted this month when Jonathan Duff became the first solicitor to be convicted of breaching the narrower reporting requirements of the Drug Trafficking Act 1994.

Under the new and wider legislation, the National Criminal Intelligence Service (NCIS) is only obliged to respond to reports from lawyers within seven days.

It is the sort of timeframe that is rapidly going the way of the Ark, and one which could result in law firms being sued for negligence in the event that the transaction and the instructions are above board, but the delay causes the deal to collapse.

Fortunately, the government has agreed that flexibility needs to be incorporated into the functioning of the law, easing the way for legitimate transactions, while still providing a safeguard against aiding potential money launderers.

The criminal justice minister has given assurances that requests from solicitors for urgent handling by NCIS will indeed be handled urgently.

It is a two-way street - solicitors need to be aware of and guard against being exploited by criminals, and the police need to alive to the needs of business.