Anti-Money Laundering for the Bar

AML obligations apply directly to barristers and chambers, not only to the solicitors who instruct them. While the extent of obligation depends on the specific services a barrister provides, the principal money laundering offences under the Proceeds of Crime Act 2002 apply to any person, regardless of profession. A barrister who becomes involved in arrangements facilitating money laundering can commit an offence even if they were not aware of the full picture. Chambers must also have procedures in place to manage AML risk. Reliance on instructing solicitors to handle all due diligence is not a sufficient response to these obligations.

Failure to comply with AML legislation can result in an unlimited fine or imprisonment of up to 14 years. Civil penalties can also be imposed. The BSB may take disciplinary action where a barrister has breached their obligations, and chambers can face significant reputational damage. Non-compliance does not require intent — unwitting or negligent involvement in money laundering can still constitute an offence. This makes it essential that barristers and chambers professionals understand what the legislation requires, even if they believe their work carries low AML risk.

Client due diligence (CDD) is the process of verifying the identity of clients and, where relevant, their beneficial owners before taking on instructions or handling funds. It also involves understanding the nature and purpose of the instructions. Standard CDD applies in most circumstances where a barrister enters a business relationship. Enhanced due diligence (EDD) is required in higher-risk situations, such as instructions involving politically exposed persons (PEPs) or transactions that are unusually complex or lack a clear commercial rationale. The training explains the types of due diligence, the circumstances in which each applies, and how to document the process properly.

If you suspect that a client or an instruction involves money laundering or terrorist financing, you have a duty to report it. A Suspicious Activity Report (SAR) should be submitted to the National Crime Agency (NCA) via the SAR Online system. You should not take any further steps in relation to the matter until you have received consent from the NCA or the relevant consent period has elapsed. You must not inform the client that a report has been made — doing so can constitute the tipping off offence, which carries criminal penalties. The training covers the SAR process in detail, including when to report, how to report, and the legal protections available to those who make reports in good faith.

Chambers should have a written AML policy setting out how money laundering risk is identified, assessed, and managed. This includes procedures for client due diligence, record-keeping, training, and the process for making internal and external suspicious activity reports. Where chambers is within the regulated sector under the Money Laundering Regulations, more detailed requirements apply, including the appointment of a nominated officer and a risk assessment. Briefed can assist chambers in drafting an AML policy that reflects their specific risk profile and the obligations that apply to their work.