Legal Sector Should Brace Itself for Increased Anti-Money Laundering Scrutiny in Wake of Global Financial Crisis. Both individual solicitors and law firms will face greater pressure for KYC compliance as part of defensive risk management strategy

Individual solicitors and legal firms will come under greater scrutiny in 2009 as prosecutions against money laundering increase and the ripple effects of increased fraud from the credit crunch hit the legal industry, according to compliance and screening specialists Datanomic Ltd, and risk management and compliance experts, Legal RM.  In particular, solicitors acting as Money Laundering Reporting Officers, or individuals who facilitate the acquisition, retention, use or control of laundered money, should expect hefty fines and prison sentences. 

Last month, Isleworth Crown Court fined Jonathan Krestin, 60, the managing partner at Butcher Burns, a commercial and property firm of solicitors, £5,000 on one count of money laundering.   He was convicted of using the firm's client account to launder money belonging to Michel Namer, a French national and convicted fraudster. An investigation by HM Revenue and Customs showed that Krestin transferred €14,000 from Namer to an Italian account of Namer's mistress and former lap dancer, Dzindzer Jeles, knowing or suspecting the monies to be criminal property.  This sum was part of the proceeds of a €35,000,000 Missing Trader Intra Community Fraud orchestrated by Michel Namer.
"Law firms are obliged under the 3rd EU Money Laundering Directive to regularly and thoroughly screen their clients against Sanctions lists," said Dr Jonathan Pell, CEO of Datanomic Ltd. "Know-Your-Customer and risk management protection initiatives have already become mandated and defensive strategies in protecting financial institutions against money laundering, and we expect the legal sector to follow suit. Law firms must ensure the proper protection measures are in place to protect both individual members of staff, as well as a firm's reputation."

Legal Service Provider standardises money laundering screening using Datanomic's dn:Director Sanctions & PEP Screening Software

AML/Compliance screening specialists, Datanomic Ltd, today announced that legal services provider, DLA Piper, has selected Datanomic's dn:Director Sanctions & PEP (Politically Exposed Persons) Screening software. DLA Piper will be using the software as part of its strategy for achieving compliance with the 3rd EU Money Laundering Directive and other applicable legislation. The Datanomic software will be used throughout DLA Piper's EMEA and Asia operations, which includes more than 40 offices in 27 countries.

Globally DLA Piper has over 3,700 lawyers, more than 2,000 of which are based in EMEA and Asia. The legal practice represents multinational, national and local clients across a range of geographies, including Global 1000, Fortune 250 and FTSE 350 companies or their subsidiaries.