The Proceeds of Crime Act 2002

The somewhat draconian measures imposed by the Proceeds of Crime Act 2002 (PoCA 2002) placed a tremendous burden of responsibility on Solicitors’ firms in England and Wales, as it imposed increased obligations to identify the proceeds of criminal conduct/crime and the true ownership of these proceeds and to report money laundering or any suspicions of money laundering.

Criminal Offences

It is a criminal offence for any person to become involved in the laundering of the proceeds of crime or to assist in that process (s327-329 PoCA 2002). Subject to the principles of legal professional privilege applying where appropriate (see Bowman v Fels) it is also a criminal offence to fail to report money laundering where he/she either knows or suspects, or should have known or suspected, money laundering. An individual also risks committing an offence if he/she discloses to any party that a report has been made to the authorities (tipping off) and that disclosure is likely to prejudice any investigation or is made with the intention of furthering a criminal purpose.

Compliant processes and audit trails

It is incumbent on all firms (and individuals within those firms), to have a structure for the identification of clients, record keeping and secure reporting of any action that could forestall or prevent money laundering. It is crucial that the firm understands the implications of both the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003, and that it complies with them.

Market leading software

Mountain Software is a leader in this field and is one of the few software suppliers to have produced an Anti Money Laundering module to assist firms to follow the correct procedures to identify clients and to report on money laundering activities.

Direct Integration

The module integrates directly with the Mountain Software PMS at client and matter level. It enables users to record whether a client has been identified or not, if the firm has a pre-1st April 1994 business relationship (investment) with him, or a pre-1st March 2004 business relationship with the client or clients. For those who require a means of identification, the software stores details and even scanned images of the documents used to identify the client. Where the user knows or suspects a breach in the regulations, the software will notify the nominated officer and/or compliance officer by e-mail and will generate the required forms for submission to the SOCA (or previously NCIS).

Features

• Different screens for private and company clients
• User defined criteria for exclusion from identification
• User definable “evidence”
• Storage of scanned or photocopied images of evidence
• Creation of email to IMLO and compliance officer
• Automatic production of NCIS/SOCA suspicious activity reporting forms (SAR)
• Notes screens
• Full audit trail history of all steps taken on each client/matter
• On screen help
• On screen notes to assist decision making
• Total integration with Mountain Software PMS
• Reports by fee earner/department/branch on:
  • Non-identified clients
  • Period since “evidence” requested
  • Number and date of emails to IMLO
  • Number and date of forms to NCIS
  • Matters not subject to Money Laundering

Mountain Software’s Anti Money Laundering module provides the structure necessary to assist your firm in complying with the Money Laundering Regulations 2003.