The Executive Council's concern is that Legal Cashiers and Administrators may not have the necessary knowledge of the law to intervene correctly in a matter, nor the authority within a practice to report infringements of the Money Laundering Regulations 2003. We already know of instances where members of the ILCA have been asked by partners to take on this role and we are extremely concerned for those members. Whilst our training courses can equip staff to spot potential infringements of the Regulations, we do not believe it is right and fair for them to face the penalties associated with the role of the MLRO.

THE ILCA POLICY STATEMENT READS AS FOLLOWS :-

'The substantive law relating to money laundering came into effect in 2002 and the final part of the new 'Regime' (the new Money Laundering Regulations 2003) came into effect on 1 March 2004.

This new 'Regime' depends extensively upon Internal Reporting (within Law Firms) concerning knowledge or suspicion of money laundering offences. Such Internal Reporting is made to the Money Laundering Reporting Officer - MLRO (sometimes referred to as the Nominated Officer). After such Internal Reporting, the MLRO has to decide if a Report should be made to the National Criminal Intelligence Service (NCIS). The MLRO carries heavy responsibility. Errors carry criminal penalties and imprisonment.

We have carefully considered the position of our members in relation to the functions and liabilities associated with the position of the MLRO working within Law Firms.

There is no specific legal or professional requirement concerning the type of qualification or experience necessary for this function, and we know that some Firms see this role being performed by Legal Cashiers and Administrators who have little or no formal legal training.
The Institute of Legal Cashiers and Administrators does not agree with this approach.

It is now clear to us that the role of the MLRO can only be safely performed by persons who have some formal legal training and who hold the required authority to intervene during a case should a file require investigation. This formal training must address not only the specific legal issues related directly to the new money laundering 'Regime' but also the many associated legal implications.

Normally speaking Legal Cashiers and Administrators will not have had the correct legal training and accordingly we believe that they should not undertake the role of MLRO in a Law Firm."

For further information contact Margaret Macdonald, ILCA Executive Secretary at ILCA, 146-148 Eltham Hill, Eltham, LONDON SE9 5DX or on 020 8294 2887 or by e-mail: exec.sec@ilca.org.uk.