The World Uyghur Congress Case Court of Appeal June 2024
Family lawyers need to be aware of the risk of unintentionally receiving criminal property as payment for legal fees, particularly after the judgement handed down in June 2024 in the Court of Appeal decision in R (World Uyghur Congress) v National Crime Agency [2024] EWCA Civ 715. Barrister Andrzej Bojarski warns family lawyers about the risk of being fined under the Proceeds of Crime Act (2002).
The belief that lawyers were protected under the Proceeds of Crime Act 2002 (PoCA) if they provided legitimate services and received payment in exchange, even if the funds came from criminal property was brought into doubt. The Court ruled that simply providing adequate consideration does not cleanse criminal property. This means that lawyers could be exposed to liability if they know or suspect that their fees are derived from illegal sources, even if they acted in good faith.
This ruling is especially concerning for family lawyers who regularly deal with financial disclosure in divorce proceedings, as they may unknowingly receive payment from assets linked to criminal activity.
The World Uyghur Congress case highlights that property remains criminal even after a legitimate transaction, so lawyers must be cautious and consider making an authorised disclosure to the National Crime Agency (NCA) if they suspect their fees come from criminal property. The ruling has significant implications for how family lawyers handle payments and may increase the need for vigilance in assessing the source of funds used for legal fees.