Red flags and escalation

Lawyers should remain alert to circumstances that cause them to question their understanding of the client, matter or funds involved.

Common examples include:

• unexplained changes in ownership or control;
• unusual payment arrangements;
• unexplained third-party involvement;
• inconsistent instructions;
• adverse media;
• sanctions concerns;
• unusual urgency;
• reluctance to provide information; and
• funding arrangements that do not make commercial sense.

When concerns arise, lawyers should not ignore them simply because previous checks were completed successfully. New information should be assessed on its own merits.

If concerns cannot be resolved satisfactorily, guidance should be sought from the MLRO.