Lawyers have been warned they face jail if they fail to report money laundering activities or clients they suspect are involved.

Ram Saroop, the new president of Bradford Law Society, has pointed out that new legislation makes it a criminal offence not to do so and lawyers face prison and risk their careers if they are not on their guard.

The new offence is committed where a person knows or suspects funds have been obtained as a result of terrorism, drug trafficking or other criminal conduct.

Mr Saroop, a senior partner with Read Dunn Connell solicitors, also urged lawyers' clients not to deal with large sums of cash when buying and selling properties or businesses. He said it was particularly relevant to members of the Asian community, who traditionally were used to dealing in cash.

"Members of the public need to understand that it is unsafe to deal with large amounts of cash when buying and selling property or a business," he said. "They should not be offended when our members ask for an explanation or identification."

He spoke out after he was installed to the top role after more than two years as vice-chairman of Bradford Law Society.

He warned that solicitors, other professional people and organisations must report any suspicion of money laundering to the National Criminal Intelligence Service.

Mr Saroop said criminals were laundering their illegal gains in transactions across the country and particularly in London.

Last year, long-established Bradford solicitors T I Clough was shut down by the Law Society after a tribunal heard that it had become involved in a massive money laundering operation and had used clients' funds to stave off bankruptcy.

Mr Saroop added that law society members were also concerned about the Home Secretary's proposals to overhaul the criminal justice system.

He said he believed it was wrong for juries to know of defendants' previous offences before conviction and he questioned the rights of defendants to choose their jurors.

He added that vulnerable people were also suffering because legal aid funding had been frozen since 1992 and lawyers had found they were operating at a loss.

"A number of firms have ceased to carry out legal aid work and others are seriously consider whether or not to continue with it."