Join the fight on dirty money

Accountants and lawyers are among the unlikely champions in an ongoing battle royal. Ranged against them are criminal and terrorist networks seeking to launder potentially hundreds of billions of pounds through the UK. Criminals are always looking for new ways to clean dirty money – from using £2,000 fake ebooks to “ghost” Airbnb bookings.

Experts say that cryptocurrencies, ewallets and the dark web may also be increasingly used by criminals to cash out their ill-gotten gains. This evolving threat is just one more reason that professional vigilance is paramount in the fight against money laundering. While the threat from “cyberlaundering” is growing, criminals are also refocusing their efforts on tried and tested formulas. So how can we spot the red flags?

Sheila Kumar, CEO of the Council for Licensed Conveyancers, the specialist property law regulator, says that criminals are becoming ever more sophisticated. “Property lawyers must make sure that they know who they are dealing with and where the money is coming from. They should promptly flag up and report any suspicions.

“Warning signs, such as a lack of knowledge of the property; seeking to use virtual currencies; and recently issued ID documents should all raise suspicions.

“Several indicators together, without reasonable explanation, may suggest a greater risk that laundering is taking place.”

Members of the Institute of Financial Accountants (IFA) are also actively encouraged to verify identities. Where clients or beneficial owners are difficult to identify, this could be a sign of money laundering. Anne Davis, its director of professional standards, says: “Firms should remember that payments into and out of the firm’s client bank account must relate to an accountancy service that is being [or has been or will be] provided by the firm.”

The Solicitors Regulation Authority (SRA) has published support for firms following changes to the law (dubbed MLR17) in June 2017, and last March its review of 50 firms found that, while most were doing all that was required, six were not. These underwent SRA disciplinary processes.

More broadly, in cases linked to improper money movements, it has closed down eight firms in the past three and a half years. Another 14 have closed down voluntarily, and it has referred 49 solicitors plus two firms to the Solicitors Disciplinary Tribunal.

Paul Philip, SRA chief executive, says: “By being vigilant, having good processes and well-trained staff, solicitors can help stop money launderers in their tracks.

“A Suspicious Activity Report is simple to raise, but could prevent people traffickers, drug dealers or those who sexually exploit children for money from enjoying the profits of their crimes.”