Compliance with Anti-Money Laundering and Terrorist Financing Laws in the Legal Profession

As a lawyer, it is essential to understand and comply with anti-money laundering (AML) and terrorist financing laws to prevent the misuse of your services for illicit activities. The following articles outline the key points from the instructions issued by the relevant authorities.

Cooperation with Authorities

Providing Information: Lawyers must cooperate fully with authorities responsible for preventing and repressing money laundering and terrorist financing crimes by providing all requested information and documents.
Confidentiality: This cooperation cannot be disclosed to clients or third parties, maintaining confidentiality is a crucial aspect of the lawyer-client relationship.

Professional Secrecy

Limitations on Disclosure: The performance of duties related to assessing a client’s legal situation, providing defense or representation in court, or counseling on how to propose or avoid a proceeding does not imply the communication or provision of any information obtained.
Internal Confidentiality: Lawyers must demand that their associates, employees, and collaborators observe these instructions, ensuring that confidentiality is maintained within the firm.

Customer Accounts

Separate Accounts: Amounts received from clients that do not constitute payment for expenses or fees must be deposited in a separate account opened specifically for this purpose.
Anonymous or Third-Party Accounts: Anonymous accounts or accounts held by a third party other than the beneficial owner are prohibited, maintaining transparency and accountability is essential.
Record Keeping: Lawyers must keep records of entries made in these accounts and submit an auditor’s certificate to AAM by January 31st of each year, stating that the entries have been regular.

Coordination of Preventive Measures

Designated Associate or Collaborator: Law firms should appoint an associate or collaborator with seniority, adequate training on anti-money laundering laws and regulations, and full access to client files and other relevant information to coordinate and monitor preventive measures.
Access to Information: This designated individual must have full access to client files and other relevant information to effectively perform their duties.

Administrative Offenses

Failure to Comply: Failure to comply with duties related to preventing money laundering and terrorist financing is an administrative offense, subject to penalties.
Investigation and Procedure: AAM will initiate and investigate the administrative infringement procedure within its scope of supervision.
Penalties and Responsibilities: The Chief Executive makes the final decision upon proposal from AAM, and the application of penalties does not relieve lawyers of their duty if it is still possible.

Disciplinary Procedure

Independence: The administrative infraction procedure is independent of any disciplinary procedure that may take place, ensuring that both processes are handled separately and fairly.

Validity

Effective Date: These instructions come into force on November 28, 2018, marking the start of a new era in AML compliance for lawyers.
Ongoing Compliance: Lawyers must continue to comply with these instructions to prevent money laundering and terrorist financing, maintaining the integrity of their profession.