ISSUE
Henry Lynch associate of the firm has been working with Moran, Talbot & Fox LLP.
Henry in the portfolio has client named Carlos Begby. Carlos is planning to purchase three
storage units with assistance from business partner Khalli living in London. Purchases are cash
buys. Khalli did not presented any documents or passport for identity1. Henry agrees to start
work for Khalli as he did not wanted to lose Carlos and faith that documents will be provided.
Henry also permits deposit of £300000 from money transfer account into client account of firm
for purchase of the Atomic Casino by Khalli. Henry did not received any documents from Khalli
and was asked to share firm's account for brief period. Henry did not concerned the matter with
anyone in firm. Deposits ranging from £10000 - £100000 were received in 50 transactions for
business and personal expenses of Carlos2. Financial statements of Carlos for three years are all
from different bank accounts and the file of Khalli only contains contact number and reference
number for the money transfer and no other information like passport or other documents. Seeing
this internal review is carried out by the firm. Firm wants to identify the statutory and
professional regulatory provisions applicable to situations, classification of the actions of under
statutory and regulatory provisions and process and procedures to which Henry is subject in
relation to classification of actions.
MEMORANDUM
Breach of duty of care and diligence
Solicitors are the legal practitioners who are responsible for the legal document,
representing or defending the legal interest of clients. They provide legal advice in variety of
laws for clients. Solicitors must have to comply with Code of Conduct. They are set rules and
regulations in standards of the conduct expected of the solicitors. Rules reflect outcomes focused
regulations of the solicitors and provides guidance to the professional standards of solicitors
while carrying out the duty of care respect to clients. Failure by the solicitor to follow these rules
could lead to being disciplined.
1 Benson, K. Money laundering, anti-money laundering and the legal profession. In The
Palgrave Handbook of Criminal and Terrorism Financing Law (pp. 109-133). Palgrave
Macmillan, Cham.
2 Hatchard, J. Legal Practitioners as Potential Money Launderers: Beneficial Ownership
Transparency and PEPs: Solicitors Regulation Authority v Sharif (2019). Denning LJ. 31.
p.189.
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Statutory and Regulatory Provisions for Money Laundering in Solicitor's Actions

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