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Money Laundering and Terrorist Financing (Obligations under the…
Money Laundering and Terrorist Financing
Money Laundering = any activity in relation to the proceeds of crime, even passive activity such as mere possession. Terrorist financing = the raising, moving, storing and using of financial resources for the purposes of terrorism
Every barrister owes an obligation not to become involved in conduct that involves money laundering or terrorist financing
Barristers who advise on financial or real property transactions or who provide tax advice have additional obligations under the Regulations + need to undertake Customer Due Diligence before acting + keep a record
Fail to comply with obligations can result in up to 14 years' imprisonment
You must not make any form of disclosure to the authorities of information protected by Legal Professional Privilege, but it does not protect communications made in the furtherance of a crime
If the work that you are undertaking is not transactional and not providing tax advice then you are not subject to the Regulations
If you are instructed on (1) buying and selling of real property or business entities; (2) organisation of contributions necessary for the creation, management or operation of companies; (3) creation, operation or management of trusts, companies, (4) the provision of tax advice = within scope of Regulations
Obligations under the regulations
Carry out a risk assessment
Keep a record of due diligence
undertake customer due diligence
monitor relationship with customer
have in place policies, controls and procedures to address the risk of money laundering or terrorist financing
take a risk-based approach
Consider: (1) high-risk country involved; (2) nature of business; (3) source of funds; (4) personal circumstances of client
Remain legally responsible for the checks and failings of your instructing solicitor
Criminal offence to fail to make the required disclosure to the authorities if you suspect money laundering, or 'tip-off' another person
Where you undertake public access work the requirements of the Regulations fall upon you directly
Disclosure - use a Suspicious Activity Report to the NCA