Criminals Targeting Litigation Solicitors

Thu, 18 Mar 2010

The Law Society has warned that criminal are targeting litigation solicitors in an attempt to launder money. With litigation not covered by the Money Laundering Regulations 2007, criminals apparently believe that lawyers are less than thorough in their due diligence on litigation cases.

Debt recovery litigation is particularly vulnerable to criminal money laundering efforts, according to information provided to law enforcement agencies . The criminals are reportedly creating cash intensive businesses, forging documents purporting to have a legitimate debt, and ask a solicitor to recover the funds. Once the false debtor makes a payment, the money is transferred to the client via the bank account of the lawyer, making it money laundering.

The Law Society is therefore urging solicitors to perform thorough due diligence on litigation clients, making sure they are aware of any risks. Any employees at litigation law firms are encouraged to look into information about the clients and debtors, and be wary of clients requesting funds be credited to a third party. Criminals have found the task easier in light of the vast number of legitimate debt recovery claims currently being pursued, helping to cover up their false debts .
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