Third-Party payments

As a general rule, funds should be received from the client or another party whose involvement is expected and properly connected with the underlying transaction. A third-party payment is not prohibited, but it requires the responsible lawyer to understand and record:

• the identity of the payer;
• the payer's relationship to the client;
• the payer's relationship to the matter;
• why the payer is providing the funds;
• whether the payment gives the payer any legal or beneficial interest; and
• whether CDD, source of funds or other enquiries are required in relation to the payer.

Payments from individuals, unconnected parties, overseas entities or unexpected sources will ordinarily require greater scrutiny than payments from a regulated lender, financial institution or professional adviser. The fact that funds have arrived does not mean they may be applied or transferred. Any unidentified, unexpected or unexplained receipt must be referred promptly to the Accounts Team and, where appropriate, the MLRO before any further action is taken.