Preventing Money Laundering in Legal Services: How Lawyers and Law Firms Can Identify and Mitigate Risks in Financial Transactions
Lawyers can be vulnerable to money laundering due to a number of factors, including:
Confidentiality: Lawyers are bound by professional secrecy which may lead to confusion about which information can be disclosed to the financial intelligence units and which can not.
Lack of understanding: Lawyers may not have the knowledge or training to recognise the signs of money laundering, which can make them more vulnerable to being used by criminal organisations.
Complex transactions: Lawyers may be involved in complex transactions that involve multiple parties and are difficult to trace.
Professional fees: Lawyers may be paid large fees for their services, which can be proceeds of crime.
Client relationships: Lawyers may have long-standing relationships with clients, which can make it difficult for them to suspect or report money laundering.
