The answer now lies in the Proceeds of Crime Act 2002 and for most of us involved in handling clients' money, it is a matter of self-preservation. The Act has imposed on us a legal duty to help prevent money laundering - an increasingly serious problem both nationally and internationally. The government believes that it is so serious that dealing with it has involved cutting across some personal rights; for example, your right of confidentiality with your advisers. Professionals and those involved in high value transactions have to report suspicious dealings. Whilst very recent case law has placed a narrow interpretation on some (but not all) duties imposed on solicitors, all those caught by the Act face the penalty of imprisonment for breaches of it. That is how serious it has become and why it has become a matter of self-preservation for some of us.
Many of our professional bodies have given their interpretation of the law and set out their own requirements for their members. So even if we avoid becoming criminals, we can still face penalties from, and the wrath of, our professional bodies if we do not comply with their regulations.
It is an uncomfortable situation for all concerned and I have considerable sympathy for bank staff facing customers' frustrations at their inability to access their accounts because of the hoops through which they have to jump.
So the next time you are asked for proof of identity, please don't shoot the messenger. Just consider: at a time when we are told that identity fraud is becoming one of the fastest-growing crimes in Britain, those hoops might stop the fraudster from emptying your bank account or signing a finance agreement in your name and driving off with the Porsche you can only dream about!
Mike Sharp
