Using a safe list in 2015
5th August 2015
The last couple of years have seen a steep rise in the number of alerts relating to bogus firms in the conveyancing sector. Previously established methods of firm identification such as the Law Society’s “Find a Solicitor” have been acknowledged to be inconclusive as the fraudsters continue to stay a step ahead. So what should your firm be doing to mitigate this risk in 2015?
The SRA have provided guidance here: http://www.sra.org.uk/risk/resources/risks-associated-bogus-firms.page. As part of this process ETSOS advocate the use of Lawyer Checker. Launched in 2012, its database will determine, using a firm’s bank details, whether the account you have searched against has a track record of successful use within conveyancing. The search has been widely adopted by a wide variety of firms, from significant market players, to traditional high street firms and sole practitioners.
The application varies; some firms have adopted a blanket policy, using Lawyer Checker on every transaction and passing on the cost as a disbursement. Others who use it ad-hoc against firms they have not dealt with before and/or do not recognise.
One comment we often hear from firms is the use of it when dealing with someone on the other side well known to the firm; in such circumstances they argue it is not necessary to undertake a check, instead they rely on a “safe list” or in some cases, their own knowledge. A “safe list” includes information (including bank details) relating to firms you have frequent dealings with. When settling final accounts the list can be used to verify the identity of the firm to which you send the monies.
But how secure is your safe list is:
- Who has access to it?
- Is it easy to falsify?
- Could someone contact you purporting to be from a firm on your safe list and change the bank details fraudulently?
A fraud only need happen once in order to have a significant impact on your practice; increase in PII, revoking of CQS accreditation, removal from lender panels. The highest loss to date is over £700,000… what impact would this have on your firm?
If a blanket policy is not the route you wish to take, use Lawyer Checker to risk manage a safe list. Commit to reviewing your safe list periodically and undertake an Account & Entity Check to ensure you remain diligent to the threat, and document the results. This demonstrates an increased commitment to tackling the risk.
For firms who do not have a safe list policy contact David Opie to be sent our practical guidance on building and proactively maintaining a safe list for use within your conveyancing department.
To order Lawyer Checker through ETSOS please contact David Opie on 01524 220001/email davidopie@etsos.co.uk or speak to your account manager.
Latest news
System Maintenance
Please be aware that we are performing some system maintenance this weekend. We don’t anticipate that this will result in any downtime of our services, but we apologise if it does cause any inconvenience
Government Confirms New Regulations and Qualifications for Estate Agents Will Happen
The government has accepted the proposals of the Regulation of Property Agents (RoPA) with wide-spread consequences for estate and letting agents.
The proposals reach right into the heart of the industry to affect regulation, training and licensing.
(more…)
Fears of Tougher Regulations and Unjust Costs Mount Ahead of Government Announcement
Estate Agents are waiting for the big reveal on Monday after Lord Best has admitted some firms could close when the regulation of property agents (ROPA) makes its recommendations to the Government early next week.
Lord Best, the chair of ROPA, has already outlined the working group’s desire for more regulation.
[NEWSFLASH] Agent Charged DOUBLE Over AML Registration Mistake
Property Industry Eye (PIE) has highlighted the case of an estate agent who has fallen foul of HMRC and been charged double.
On 4th April, with plenty of time to spare, Hayman-Joyce renewed their annual HMRC registration. They paid the fee and thought they’d ticked all the boxes.
Compliance in a Box: The Natural Remedy for Your AML Headache
Estate agents around the country are realising that the new 5th AML Directive goes deep. There’s a lot of work involved in becoming compliant. And the penalties for non-compliance, either deliberately or through confusion, are severe. (more…)


Click the Apply button opposite to use our software on a trial basis...

- What now for the agency industry as Boris Johnson takes over? https://t.co/KUJc0V2EEn
- Fears of Tougher Regulations and Unjust Costs Mount Ahead of Government Announcement https://t.co/N8VDGWNuC2 https://t.co/giZNcR88pH
- We're always talking to agents about reducing RISK with KYC (Know Your Customer) Due Diligence...but what about con… https://t.co/ePdHELsgKp
- Want to make sure you're ticking all the right boxes for your AML compliance? Click the link below and for our *FRE… https://t.co/3bjcIPFf2y
- Estate Agents, Compliance and the Beautiful Game https://t.co/1QwL5YQMit https://t.co/xawZnlv38L
- What now for the agency industry as Boris Johnson takes over? https://t.co/OUBAikhCTw
- More change on the horizon for agents! Seems to be a real split of opinions on this one. #estateagents… https://t.co/RhWLtkEbJQ
- We're always talking to agents about reducing RISK with KYC (Know Your Customer) Due Diligence...but what about con… https://t.co/CdzfWVEpXy
- Want to make sure you're ticking all the right boxes for your AML compliance? Click the link below for our *FREE* 1… https://t.co/j5SnrJMFcS
- MI5 spies 'at breaking point' as they face threats https://t.co/SBGS2Wsi2k via @MailOnline. Security Minister Ben W… https://t.co/WwEKnKIpN5