SRA Issues Guidance to Tackle Sham Litigation Practices

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.