Help! My client’s involved in money laundering!

It’s a constant dread for any solicitor, discovering that one of your clients involved in criminal activity. This article will explore the steps you should take if you suspect or have evidence of a client’s involvement in money laundering. Whatever the outcome, it is crucial to respond promptly and appropriately to protect yourself, your firm, and uphold legal and ethical responsibilities.

Recognising Red Flags

Before taking any action, it’s essential to recognise the warning signs of potential money laundering activities. These red flags can include unusual transactions, frequent large cash deposits, complex corporate structures or suspicious patterns of behaviour. Being vigilant and proactive in identifying these indicators can help address potential issues early on which is where Know your Client (KYC) really comes into play. Remember, this process should be ongoing throughout the entire business relationship.

Reporting to Authorities

When faced with potential money laundering activities by a client, it is crucial to seek advice from your reporting/compliance officer to understand your obligations and the next appropriate steps to take. Usually the end result is a Suspicious Activity Report (SAR) being filed by the reporting officer to the National Crime…