This list can be broadly divided into three sections:
- About the client;
- About the funds; and
- About the transaction
About the Client
Whether your practice is to deal with clients mainly face to face, or over the phone, or by email or post you will need to be able to speak to them about the transaction and you will need to be satisfied that they are able to read the legal documents (contract, mortgage offer etc) or else that you can read them over to them. If you are acting for more than party this will need to be the case for all parties. A common scenario is where there are multiple clients (married couples for example or parent and child) and one speaks English whereas the other does not. In that scenario the English speaker naturally takes the lead and the other will tend to avoid communictating with you. The clients may well have only the best of intentions however you need to be alive to the risk of undue influence or simply of the English speaker failing to explain something correctly to the other so that they cannot make an informed decision. It is important therefore to speak to all parties, preferably before accepting an instruction and consder whether it is appropriate for you to act. If an interpreter is suggested then it ought to be a professional interpreter, so as to avoid undue influence and reduce the possibility of mistakes. That will come with a cost to the client and you should think about whether that is really in their best interests or whether they would be better served by employing a solicitor that speaks their language.
If the client is resident outside of the UK, this is certainly not a bar to acting however you will need to consider whether the the territory they are in is considered a high risk jurisdiction and what additional due diligence checks you will need to carry out as well as practical issues like extra postage time and cost, where you have to send or receive documents by post. If they are in a "grey list" territory, i.e. one that is in the highest risk category for proceeds of crime and money laundering according to the Financial Actiion Task Force (FATF) you should consult your COLP for direction on whether the firm's AML policy allows you to act and what extra precautions you should take.
About the Funds
Detailed checks on the source of the client's funds and the source of their wealth will need to be carried out if you are instructed but at the initial stage you should ascertain whether any funds you need to complete the transaction will originate from outside of the UK and if so, consider speaking to your COLP or consulting your firm's AML policy. Ask wheher any of the funds are to be provided by a third party and if so think about whether it appears appropriate for that person or entity to provide a contribution. Finally, ensure that you understand the mechanics of the proposed transaction and satisfy yourself that it makes sense. Take into account the reason for the transaction and the client's age and apparent financial status.
