Solicitors should be aware of the list of money laundering red flags in Chapter 9 of the Guidance Notes.

It is also important for solicitors to be mindful of sham litigation red flags. Typically, a solicitor is contacted by a new client, usually based outside the country, seeking to recover funds owed to them from an Irish-based company or a former partner. The new client instructs the solicitor in a litigation matter which places the legal service outside AML compliance duties. The instruction may be litigation for breach of contract or recovery of funds agreed in a family law settlement. Fraudulent supporting documentation (for example copy contracts/settlement agreements etc) and intricate background stories are often provided. Sometimes, the solicitor receives a sum of money from the third party and is instructed to deduct their fees and pass the remaining funds on to the client without ever having provided a legal service.

The Law Society frequently issues warnings to solicitors about potential money laundering scams involving fraudulent litigation/debt collection schemes.