A practical guide for law firms

Proliferation Financing (PF) is an international crime which facilitates the movement and development of illegal goods in order to provide weapons of mass destruction for rogue states like Iran and North Korea. It has become an increasing cause of global concern over the last decade, and its potential consequences can be severe – from global instability to a catastrophic loss of life. 

The UK’s position in the global economy and international financial system makes it a prime location to raise funds to develop chemical, biological, radiological, and nuclear programmes that threaten international peace and security. UK law firms are vulnerable to being used for PF due to their involvement in transactions such as mergers and acquisitions, capital raising and other business activities as well as providing legal advice and assistance to clients in high-risk jurisdictions. The emergence of new regulations and tools designed to disrupt PF means that law firms need to be aware of the dangers of PF and adopt appropriate policies and procedures to identify and manage the risks.