Are You Being Used? How Criminals Exploit Legal Professionals

Not All Criminals Wear Ski Masks

If someone walked into your office and asked you to launder money, you’d say no. But what if they asked you to help them buy a property, set up a trust, or incorporate a company? They seem professional. They pay your fees. They answer your questions. What then?

This is the reality of money laundering in the legal sector. Criminals don’t say, “Can you help me commit a crime?” They say, “Can you act on this transaction for me?” And if you’re not alert to the signs, you could be part of the process without ever knowing it.

How Criminals Exploit Legal Professionals in the “Layering” Phase

In modern money laundering, law firms are most commonly targeted during the layering phase — when illicit funds have already entered the financial system and criminals are trying to disguise their origins. They do this by:

• Buying and selling real estate

• Setting up or purchasing companies

• Creating trusts or other ownership vehicles

• Moving money between accounts or jurisdictions

These are all legitimate legal services. And that’s the point. Criminals need professionals to give their activity a veneer of legitimacy.

What Makes Lawyers So Valuable to Criminals?

Three key things :

1. Trust and reputation — Transactions handled by law firms are less likely to be questioned.

2. Access to legal structures — Companies, trusts, property, and contracts all help disguise ownership.

3. Lack of suspicion — Lawyers are trained to help, not to assume criminality. This is exactly what bad actors rely on.

The more “plausible” the client appears — polished, successful, and cooperative — the more careful we must be.

You Are the Gatekeeper, Not the Guard Dog

Most lawyers are ethical, risk-conscious professionals doing the best they can in a complex landscape. But AML compliance isn’t about blaming lawyers — it’s about recognising the real threat: You are being targeted because your role helps make criminal funds look clean.

That doesn’t mean you’ve done something wrong. But it does mean you need systems, training, and support to prevent your services from being misused.

Red Flags: Questions to Ask Yourself

• Is the client overly focused on speed or secrecy?

• Is there a mismatch between the funds available and the client’s known profile?

• Is the client using complex ownership structures without a clear rationale?

• Is the work requested outside your usual client base or risk appetite?

These don’t automatically mean criminal intent — but they’re worth slowing down for.

Final Thoughts

Criminals don’t ask for your help laundering money. They ask for legal services. Understanding how criminals exploit legal professionals, and embedding safeguards into your everyday processes — is what effective AML compliance looks like in practice.

Need help making AML part of your day-to-day operations?

AML Sorted works with law firms to build practical compliance processes that protect your people, your firm, and your reputation. Get in touch with us today.