The guidance aims to highlight the threat posed by sham litigation to law professionals and provide tips on how to avoid facilitating financial crime;
Sham litigation involves criminals creating fake disputes to disguise the movement of illicit funds or assets; and
Where sham litigation is suspected, this should be escalated to compliance officers and reported to the National Crime Agency (NCA) as necessary.
✅ Firms regulated by the SRA should implement AML training, revise SRA Account Rules, and reassess risk management processes on a regular basis to strengthen their defences against sham litigation.