Bar Standards Board issues AML report

The Bar Standards Board (BSB) has released its annual report for the fiscal year 2023/24, detailing the measures it has implemented to combat money laundering, terrorist financing, and other forms of economic crime within the legal profession. This publication underscores the BSB's commitment to upholding the regulatory standards introduced by the Economic Crime and Corporate Transparency Act 2023, which enhanced the legal sector’s role in countering economic crime by amending the Legal Services Act 2007. This amendment formally introduced a Regulatory Objective aimed at promoting the prevention and detection of economic crime.

The report emphasises that while few barristers directly handle matters falling within the scope of the Money Laundering Regulations (MLRs), it is essential for the Bar to remain vigilant against potential risks. In compliance with these regulations, all barristers must annually declare whether they engage in work that involves MLR-regulated activities when renewing their practicing certificates. Similarly, BSB-regulated entities must report on their involvement with MLR-relevant work both upon authorisation and annual renewal.

Mark Neale, the BSB’s Director General, noted the importance of these measures, stressing the BSB’s role in equipping barristers to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The BSB’s website serves as a primary resource, regularly updated with guidelines on mitigating money laundering risks. In addition, Neale announced that a new webpage will soon provide consolidated information for chambers regarding practice management requirements related to AML and CTF.

The report references the 2024 National Strategic Assessment of Serious and Organised Crime, which estimates that over £100 billion is laundered annually through UK corporate structures. This significant volume presents an ongoing risk that professionals, including legal advisors, may inadvertently enable these activities if vulnerabilities within their controls are exploited. Barristers are encouraged to ensure their practices maintain rigorous risk assessments and customer due diligence measures.

Additionally, the Cross-system Professional Enablers Strategy 2024-26, a key initiative within the Government’s Economic Crime Plan, aims to foster a unified response among professionals to reduce the risk of enabling criminal activity. The BSB is collaborating with the National Economic Crime Centre, law enforcement, and other regulatory bodies to implement this strategy.

In his statement, Neale encouraged barristers to stay informed through the BSB's online resources, monthly Regulatory Updates, and social media channels, all designed to assist barristers in staying compliant and proactively managing their practice standards in alignment with the latest regulatory requirements.

As a professional body supervisor under the MLRs, the BSB’s commitment to robust regulatory oversight highlights its dedication to safeguarding the integrity of the Bar, supporting a comprehensive legal response to illicit financing within the UK’s legal sector.