Rakesh is a solicitor, at a law firm called Ellington and Co, based in Leeds. This morning, a brand new client, Nigel Smeeth, came to meet Rakesh. Nigel wants to instruct Rakesh to act on his behalf in relation to a building he wants to buy. Nigel says he is a businessman, dealing with various imports and exports and is based mainly in the North East coast of England. He explained to you that he wants to buy a building in Leicester, which is for sale at a very competitive price. Nigel is sure many other people will want to buy it, so he needs a solicitor to act very quickly to get the deal done as soon possible. In addition, Nigel wants you to deal with the purchase as soon as possible, as he is going away soon, for a very long holiday to South America. Nigel says he already has the money for the purchase, in cash. He wants Rakesh to put all the cash into Ellington & Co's bank account, so the money is available when needed. When Rakesh asks Nigel about the source of his cash, Nigel is quite vague. He says that in his line of business there are a lot of "cash-in-hand" deals as he prefers not to pay tax on the goods he imports and exports and cash transactions make this a lot easier for him. Nigel says to Rakesh, "It's a tough business to be in and it is better if you don't know too much about it but at least but at least I have managed to build up some good cash savings. I now need somewhere safe to invest my money and this is an ideal opportunity." Rakesh thinks this could be a good chance to develop a new client for the law firm but also wonders what his legal and professional responsibilities are? Youthinkthiscouldbeagoodopportunitytodevelopanewclientbutwonderifit Page 14 of 14 1. What is "money laundering" and explain why solicitors are at risk in their professional practice? Give an example of how a criminal could use a solicitor to "launder" money. [25%] 2. What information in the scenario makes you feel suspicious about Nigel Smeeth and what he has instructed Rakesh to do? Are there any "warning signs"? [25%] 3. If Rakesh decides to act for Nigel Smeeth on this transaction what offences could he potentially commit? [50%]