Background

We regularly advise clients, particularly those in the financial services sector with regard to difficult issues, where they themselves could risk prosecution for potential offences under the Proceeds of Crime Act.

What we did

Recently a significant client of the firm who is a leading provider of financial advice, was placed in such a position. One of its clients, who is a high profile figure in broadcast journalism wanted to withdraw savings from her account to fund a property purchase. Shortly before the transfer request was received, our client was contacted by law enforcement agencies in relation to a substantial outstanding confiscation order previously imposed against family members of the journalist.

Our client therefore had reasonable grounds to suspect that the funds to be withdrawn represented the proceeds of crime and so could not safely process the request without the consent of the National Crime Agency.

By the point we were instructed there has been delay in obtaining that consent, and the journalist was threatening to use her media contacts to embarrass our client. Our client could not act and similarly could not tell the journalist why it could not do so, because of the risk of committing a further "tipping off" offence.

This put our client in an invidious position in circumstances where it had done nothing wrong and simply wished to comply with the law.

Outcome

We were able, at short notice, to utilise senior contacts at the NCA and ensure that the required consent was granted.

This avoided reputational and/or commercial damge to the client. The client was delighted and sent very positive feedback directly to the Managing Partner.