In July 2002, Jonathan Duff became the first solicitor to be convicted for failing to disclose a knowledge or suspicion of a client who had engaged in money laundering. In a subsequent interview given to The Times, Duff commented that he might not be the last solicitor to face such a prosecution.
While Duff was prosecuted for an offence related to actual criminal activity on the part of his client, a clear message was nevertheless sent out that a failure to understand the money laundering legislation is no defence to a prosecution. It is therefore significant that, since the time of that case, the Proceeds of Crime Act 2002 (POCA) and the Money Laundering Regulations 2003 (MLR) have come into force, bringing with them a number of new offences that increase the obligations placed upon solicitors to guard against money laundering. In addition to knowing the relevant law themselves, solicitors are now required, under threat of criminal sanction, to ensure that their staff are trained to recognise and report potential money laundering.
