New ways of working pose money laundering risks

Your Expert Witness pound coinsOne of the areas of practice attracting much attention in the world of the expert witness is also, according to reports in the legal press, attracting the attention of money launderers. Alternative dispute resolution (ADR) is an area of increased risk from criminals laundering money, as is litigation, the Law Society has warned.

Another risk is the potential for organised criminals to "seek to invest in legal practices through the licensing of alternative business structures", another blossoming trend in the legal profession.

The Law Society Gazette reported on the annual report to the Treasury on anti-money-laundering activities by the Law Society and Solicitors Regulation Authority. According to the Gazette: "The report says the 'key methodologies and warning signs of money laundering and terrorist financing remain relatively consistent for the legal sector'.

It goes on to say: "But it notes that increased risks had arisen due to the increased use of litigation and ADL methods to attempt to launder money, and the increase in private funding for property purchases as lenders require higher deposits and home buyers seek funding from friends and family."

To put the risks into perspective, however, the report stated that during the year, six solicitors were struck off and two suspended for breaches of AML regulations. A further eight were fined and two reprimanded. Meanwhile, for breaches of the Proceeds of Crime Act, one was struck off and two refused restoration to the roll. That was out of a total of 159,524 solicitors on the roll.

Picture courtesy of www.freeimages.co.uk