Compl-i - October 2009
Solicitors Identity Hijacked by Criminals
The Law Society warned solicitors to be extra
vigilant after reports that criminals are finding new ways to
launder money through legal practices. The main situations
where such illegal activity is taking place is in conveyancing
transactions and mortgage applications.
In some circumstances criminals have managed
to hijack the identity of the firm and successfully represent
themselves as solicitors. The method they use to do this is
to gain access to the firm’s letterhead and other paperwork and
recreate the documentation by amending the details and adding the
names of fictitious solicitors. Some criminals have also
attempted to register a new branch office of an existing firm with
the SRA in order to appear on the professional register.
The problem is becoming more widespread and in
response the Law Society has published the following guidance.
- Check the identity of the
solicitor/conveyancer on the other side of the transaction where
you do not know them personally or professionally. The Law
Society’s practice note on
Mortgage Fraud gives information on how to do this.
- Take care when providing your letterhead to
prospective clients. Should you decide to decline to accept
instructions from a new client as you have concerns regarding the
validity of the identity information they provide or believe they
are trying to involve you in money laundering or fraud and have not
already provided them with any documentation on official firm
stationery, you may wish to decline their instructions
verbally. If you do so ensure you keep a detailed file note
of the conversation and your concerns. You may also feel it
necessary to report it to your firm’s Money Laundering
Officer.