No, this isn't a joke, more of a difficult situation that more and more lawyers are now finding themselves in following the introduction of the Proceeds of Crime Act, which came into force in March. The Money Laundering Regulations 2003 have been brought in to detect money laundering activities outside the existing regulated sector of financial services. Even more of an issue is whether by upholding the law and implementing the Act, we are actually helping those that break it get away with it? The regulations are designed to strengthen EU defences against terrorist financing as well as money laundering. But the illegal financing activities from the likes of Osama Bin Laden, the IRA and the Mafia could be slipping through the net due to time being wasted on investigating petty crimes. So far this has been unfounded, but early reports certainly suggest that the Act has made life more difficult, not only for the lawyers, but also for the National Criminal Intelligence Service (NCIS), which is now receiving more reports than ever on criminal activities involving money laundering. This has prompted a warning from the NCIS, stating that over-reporting is as bad as no reporting at all. Since the introduction of PoCA more than 13,000 reports have been logged to the NCIS by solicitors in the UK. This compares to just 50 in Germany and a mere eight in France - perhaps we Brits are too honest? This is where the problem with the Act lies - what does or doesn't constitute a crime worth reporting? As the figures show, opinions obviously differ across the continent. What's more, we lawyers are also being expected to police the new regulations by acting as unpaid detectives and reporting every crime that we see. Gone are the days of the Godfather when some lawyers were as corrupt as the criminals. But this raises the question as to whether lawyers were just acting in the best interests of their client? Legal privilege is something that lawyers take for granted. It has long been a fact of legal practice that what you discuss with your client remains confidential, but all this now appears to be changing and the very essence of the client/lawyer relation-ship is being threatened. Many within the legal profession are unhappy with the changes, including the Law Society, claiming that the new rules have created more problems than they will solve. But law firms need to remain vigilant as failing to comply with the regulations could land you in hot water. In most cases common sense will prevail, but the law doesn't always take into account common sense. Ensuring that a strict set of procedures is put in place within the firm and that all staff are fully trained on the ins and outs of the regulations is essential and will minimise the risk of action being taken against employees. But what this all boils down to is a lot more work and expense for those involved in implementing the new rules, and although the intention of the directive is valid - to cut the financing of terrorist groups and drug running - the jury is out on whether it will have real impact. | 
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