Thomson Wilks responds to FIC allegations

Stephen Thomson, Director at Thomson Wilks Attorneys, has expressed strong concerns regarding the lack of compliance within the legal profession, labeling the non-compliant law firms as an 'embarrassment to the legal profession.' Thomson highlighted that 40% of the legal profession is non-compliant, with the majority being negligent, but some willfully disregarding regulations to profit from trust account holdings. Thomson emphasized the importance of addressing this issue promptly to avoid further damage to the profession's reputation and the country's economy. He suggested implementing measures that would compel law firms to comply with regulations effectively. Thomson proposed collaboration between the Financial Intelligence Centre (FIC), the Law Society, the Legal Practice Council (LPC), and banks to ensure compliance. He recommended linking the issuance of Fidelity fund certificates to proof of submission of reports to FIC, allowing banks to suspend trust accounts if necessary. By restricting law firms' ability to operate trust accounts, Thomson believes non-compliant firms will be compelled to adhere to regulations. When questioned about the perceived leniency of current penalties for non-compliance, Thomson noted that fines are not a sufficient deterrent for law firms profiting from illicit trust account activities. He suggested that increasing penalties and implementing his proposed measures would be more effective in curbing non-compliance. Thomson's approach, while potentially drastic, aims to address the root cause of non-compliance within the legal profession. By targeting the financial infrastructure that enables non-compliant behavior, Thomson's recommendations seek to promote a culture of adherence to regulations within law firms.