Money laundering is one of the greatest threats to the legal profession, according to a new Solicitors Regulation Authority (SRA) report.
Its Risk Outlook, published annually, looks at the key risks to law firms so that preventative measures can be planned and implemented.
Earlier this year, the National Risk Assessment of Money Laundering and Terrorist Financing 2017 found that the legal sector remains at “high risk” of exploitation for money laundering.
Money is most typically laundered through property transactions and company formations, meaning solicitors working in these specialisms are more likely to be targeted.
The SRA added that solicitors should also keep an eye on their own accounts and diligently supervise how client money is being used.
The report found that the overall number of reports of money laundering had increased by 10 per cent in 2016.
Paul Philip, the SRA’s Chief Executive, said: “Keeping the profession free of money laundering is in everyone’s interest. It means that we can disrupt serious crime – crime that funds everything from terrorists to people traffickers.
“Solicitors have an important role to play and the majority want to do the right thing, but no one can afford to be complacent. This is a high risk for the profession and we must all step up to deal with the challenge.”
The autumn Risk Outlook also identified dubious investment schemes, IT security, and access to legal services as significant risks to the sector.
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