The Legal Services Board (LSB) has issued new guidance for legal services regulators, highlighting the vital contribution lawyers make in combating economic crime.
The guidance supports regulators in implementing a regulatory objective introduced under the Economic Crime and Corporate Transparency Act 2023. The LSB and legal services regulators are required to promote the prevention and detection of economic crime, such as money laundering, fraud, and breaches of financial sanctions.
Legal services providers are uniquely positioned to help prevent these offences. This is essential to maintaining the integrity of the UK’s legal system and fostering economic growth.
Lawyers are crucial in society. They provide essential services that protect consumers and the public. When they are involved in facilitating economic crime, whether knowingly or unknowingly, it harms public trust and confidence in legal services, and undermines their ability to serve clients effectively.
Richard Orpin, Interim Chief Executive, Legal Services Board, said:
“The public relies on the legal profession to uphold the rule of law. So, when regulated legal services providers are involved in economic crime, it damages public trust and undermines consumer confidence in legal services.
This guidance helps regulators and the broader legal services sector understand what regulators should do to better prevent and detect economic crime.
It will help ensure regulators take a proportionate, risk-based approach that supports the legal sector’s significant contribution to economic growth.
I thank everyone who responded to our consultation. The LSB remains committed to working collaboratively to ensure the legal profession continues to play its part in the national effort to combat economic crime.”
The guidance follows a public consultation, which resulted in revisions being made to provide greater clarity and improve its overall effectiveness.