Illustration: a solicitor is asked to provide tax advice to a client. The client admits that over the last three years he has not fully disclosed his income and capital gains to HMRC. The purpose of the solicitor’s instructions is to advise on how to legitimise the situation. Must the solicitor disclose under s330? He must consider: 


• does he know or suspect (or have reasonable grounds for knowing or suspecting) that the client has engaged in money laundering? On the basis that the client is likely to be in possession of criminal property, the answer seems to be ‘yes’;

• did the information arise in the course of business in the regulated sector? Since tax advice is within the regulated sector, the answer is ‘yes’.


The initial conclusion must therefore be that a disclosure must be made. But do any of the defences apply? The obvious possibility is to argue the defence of ‘privilege’ since: 


• the solicitor is a professional legal adviser;

• the information appears to have been provided in privileged circumstances;

• it does not appear that the information was communicated with the intention of furthering criminal conduct.




The conclusion is likely to be that the defence of privilege will apply and thus there is no requirement to disclose. 


This example comes from the excellent Solicitors and Money Laundering – a Compliance Handbook by Peter Camp (3rd edition; The Law Society; £59.95). Highly recommended.