• MONEY LAUNDERING

    LATEST DEVELOPMENTS

    By now most people doing any business at all in the United Kingdom will be aware of the coming into force of the Money Laundering Regulations 2003.  These regulations were laid before Parliament on 28 November 2003 and came into force as far as solicitors are concerned on 1 March 2004.  

    The main effect of the regulations is to complete the implementation in the United Kingdom of the second European Community Money Laundering Directives agreed in December 2001, some 3 months after the atrocities of September 11 2001. 

    The purpose of the Money Laundering Regulations is to set up barriers to prevent Money Launderers from using business, including solicitors’ practises for the laundering of money. 

    As far as solicitors are concerned, the regulations apply to all clients who carry on “relevant business” as defined in Regulation 2 of the Money Laundering Regulations. 

    Relevant business is said to include (pursuant to Regulations 2(2)(l)) “the provision by way of business of legal services…which involves participation in a financial or real property transaction (whether by assisting in the planning or execution of any such transaction or otherwise by acting for, or on behalf of a client in any such transaction)”.

    The identification procedures which Magrath LLP must now follow require that as soon as is reasonably practicable after contact is first made between the firm and the client, the client must produce satisfactory evidence of his or her identity and if satisfactory evidence is not made available, the business relationship with that client must come to an end.
     
    Clients of the firm will have noticed that since 1 March 2004 we have been requesting proof of identity at the outset of new matters where such proof has not previously been provided.  The reason for this is so as to comply with the obligations we have under the Money Laundering Regulations 2003. 

    If any client requires further advice and assistance with regard to the implementation of the Money Laundering Regulations 2003 whether at Magrath LLP or within the client’s own business, he or she should contact Nick Goldstone who is the Money Laundering Reporting Officer at Magrath LLP and in charge of training within the firm on the subject of the Money Laundering.