Regulation
Solicitors feel they are the subject of too many regulatory burdens, research reveals.
A Law Society review into how solicitors’ firms have implemented the Money Laundering Regulations 2007 found two-thirds of solicitors felt supported by the Law Society in meeting their obligations. Most firms have updated their policies and procedures and trained the majority of staff in the new requirements. However, practitioners also said they faced too much red tape.
The review found:
64% said the greatest deterrent for use of the reliance provisions was the fact they remained criminally liable for any omissions committed by the person they relied on;
43% found it difficult to find enough information to apply simplified due diligence;
a third of respondents had turned down a retainer from an exposed person, due to the perceived risk of the client; and
there was a general perception that costs have increased since the introduction of the 2007 Regulations.
Alison Matthews, chairman of the Law Society’s Money Laundering Task Force says: “We see these results as a useful starting point to generate discussions about how we can work together with the profession.”
