Concerns about the solicitor being investigated over property deals linked to MP Michelle Thomson were raised with the Serious and Organised Crime Agency (Soca) four years ago, it has emerged.
The Law Society of Scotland has confirmed it submitted a suspicious activity report (SAR) on Christopher Hales to the agency in October 2011.
The SAR was submitted following an inspection of Mr Hales’ firm which resulted in him being suspended, prosecuted by a discipline tribunal and subsequently struck off as a solicitor in 2014.
The Law Society has come under scrutiny over the length of time taken to formally submit evidence on the case to the Crown Office.
Although concerns about potential criminal matters were brought to prosecutors in December 2014 and April 2015, they were not formally raised until July 2015.
A police investigation is now being carried out.
Ms Thomson has denied any wrongdoing but has withdrawn from the SNP party whip.
During First Minister’s Questions this week, First Minister Nicola Sturgeon backed Labour leader Kezia Dugdale’s calls for the Law Society to publish all documents relating to the case.
Ms Dugdale claimed there could be a perception “the Scottish establishment is closing ranks to protect one of its own”.
In a statement, the Law Society said that until the existence of a police investigation became public knowledge it “considered it could not disclose the fact that an SAR had been submitted”.
Responding to calls to publish all documents, it said: “We have sought to be as open as possible about our handling of this case, the steps taken that led to Mr Hales being struck off as a solicitor and our reporting to the relevant authorities.
“However, it would be irresponsible to release all of the files on this case as has been suggested.
“Not only would publication of this kind go against our data protection obligations but it could jeopardise the ongoing police investigation and potentially prejudice any legal proceedings which followed. We will, of course, give Police Scotland our full assistance.”
Soca, now the National Crime Agency, said it could neither confirm or denyreceiving the SAR, as it does not comment on individual cases.
SARs alert law enforcement agencies to potential money laundering.
The UK Financial Intelligence Unit (UKFIU) identifies the most sensitive SARs and sends them to the appropriate organisations for investigation. The remainder are made available to UK law enforcement bodies via a secure channel.
Scottish Conservative MSP Murdo Fraser said: “This is an astonishing development which raises a new raft of questions.
“Both the First Minister and the Lord Advocate have said in the Scottish Parliament that they knew nothing of this.
“Yet here we see that the Law Society flagged this up in 2011 – what has been happening for the last four years?
“The public and those who feel they were a victim of this scheme need answers, because this appears to getting messier by the day.”
Scottish Labour’s Jackie Baillie said: “It’s now nearly three weeks since questions were first publicly raised about the property deals of the SNP MP Michelle Thomson and yet there is still confusion about who knew what and when.
“We need full disclosure from all of the agencies and organisations involved. Without that full disclosure, it will look to the public like the buck is being passed back and forth between the Law Society of Scotland, Police Scotland, the Crown Office and now the National Crime Agency.
“When did Michelle Thomson know that this case had been reported to a law enforcement agency and when did she disclose this to anybody during the referendum and general election campaign?
“None of what has been released today by the Law Society of Scotland accounts for the year-long delay between Christopher Hales being struck off and them informing the Crown Office about the case involving the property deals of the SNP MP Michelle Thomson.
“These latest revelations only strengthen the case for an independent external inquiry into the Law Society’s role in this case and for the Law Society to publish all papers on this matter.
“Without credible answers, the public will get the impression that the Scottish establishment is closing ranks to protect one of its own.”
Meanwhile, the Parliamentary Commissioner for Standards has confirmed she will not be investigating a complaint about Ms Thomson.