Under Regulation 18 of the Money Laundering and Terrorist Financing Regulations self-employed barristers and BSB entities that carry out work that falls within the scope of the Regulations must take appropriate steps to identify and assess the risks of money laundering and terrorist financing to which their practice or business is subject.
We are required under Regulation 17 to identify and assess the money laundering and terrorist financing risks associated with the instructions we receive from all clients.
A risk assessment will be undertaken on all clients wishing to instructing counsel under the Public Access Scheme
The factors posed below will be considered when assessing the risk of the client and/or the transaction.
Consideration will be given to the relationship of the client to the barrister. Is this an existing client or a new business relationship?
Has the client been introduced by a 3rd party?
Is the client using an intermediary?
Is the client a politically exposed person?
If the client is a legal entity, is there full visibility and ID&V of beneficial owners and directors/controllers?
If face to face contact has not been made during the transaction, assessment of this risk will have to be made about the legitimacy of this arrangement.
Consideration will be given to the location of the client. Is the client local/UK/EU/Other international location?
The client will be required to provide standard ID and address verification.
If using s.17 reliance (obtaining certified copies of ID and address verification), is the authenticity/professional status of the certified person/entity confirmed?
Assessment will be undertaken in relation to the source of wealth/source of funds based on the information we have on the client. Evidence of SoW will be required in high risk clients/transactions.
Consideration will be given to the nature of the client business. Is it a high risk or high cash turnover business?
Consideration will be given to the type of transaction. Could it be used for the purposes of money laundering or is it at a higher risk of money laundering?
Wills and Power of Attorney will be considered a lower risk in contrast to Commercial Property, which would be considered a higher risk.
Does the transaction make sense or is it overly complex given the underlying nature of the business being conducted?
Does the transaction request of the client meet with the parameters of the services we provide?
Consideration will be given to the nature of the transaction and the financial means of the client.
Checks will be made on the source of funds. Are the funds clear and identifiable?
Are the funds coming from a recognised financial/credit institution or are they personal funds?
Is the funding coming from overseas and what is the connection to the client?
Are the funds being paid by a third party otherwise unconnected to the transaction?