Money Laundering
The Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003 and 2007 require the Firm to undertake background “know your client” checks (including obtaining evidence of identity) on its clients, prospective clients and the legitimacy of the source of any monies that are to pass hands during the course of the retainer. If the Firm is unable to obtain satisfactory “know your client” and identity evidence within a reasonable period after the commencement of the retainer, the Regulations oblige the Firm to terminate the retainer and cease acting.
In certain circumstances prescribed by the Act and Regulations, if the Firm has suspicions of money laundering by anyone, it will be obliged to report the suspicions to the relevant regulatory authorities. Where the Firm is obliged to make such a report, it is unlikely to be permitted to inform the client that it has made or is contemplating making a report without the prior consent of the relevant regulatory authorities. Further, the Firm may be obliged to terminate the retainer and to cease acting.
A prospective client will be required to agree that, if requested, the Firm may pass on to any other person acting on the client’s behalf in relation to the subject matter of the retainer, the information and documentation that the Firm has obtained in response to its “know your client” checks.
The Firm will not be liable for any loss or damage to the client or any holding, associate or subsidiary company flowing directly or indirectly from:
(i) the Firm’s compliance of its obligations pursuant to the Act and Regulations; and
(ii) any acts of omission or commission by the Firm so as to ensure that the Firm, its partners and employees, do not infringe any civil or criminal law whether foreign or domestic as the Firm understands the law to be.
Proof of Identity
The law requires solicitors as well as banks, building societies and others, to obtain satisfactory evidence of the identity of their clients. The Firm therefore is grateful if any prospective client provides at the outset either of the following:
- current photocard driving licence, correctly showing current address, or
- passport, plus an item of evidence to prove current address, such as a recent utility bill, recent council tax demand or bank statement.
Alternative evidence may be acceptable if for any reason the above are not available.
Funds should not be sent to the Firm until the identification procedures have been carried out.