Naslov
Anti-money laundering efforts and risks faced by legal professionals

Autori
Cindori, Sonja

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
Conference on Privatization, Banking, Money Laundering & Cross-Border Insolvency, Conference proceedings / Belohlavek, Alexander J - Varšava : The World Jurist Association, 2015

Skup
Conference on Privatization, Banking, Money Laundering & Cross-Border Insolvency

Mjesto i datum
Varšava, Poljska, 24.03.2015. - 27.03.2015

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
money; laundering; risk; legal professionals; due dilligence

Sažetak
Money laundering is a consequence of predicate offenses. The first attempts of money laundering were simple and involved the financial sector only. As the process of money laundering evolved, it affected the development of the prevention mechanisms that included both, the non-banking financial sector and the non-financial sector. Non-financial sector have been exposed to particularly sophisticated attacks because the financial sector is heavily regulated and therefore offers fewer chances of successful money laundering. The Third Directive 2005/60/EC and FATF Recommendations (implemented into the national legislations of all EU member states) explicitly regulate the position of legal professionals regarding money laundering and terrorist financing activity. According to the Third Directive and FATF, the impact of legal professionals is limited to specific financial, real estate and corporate related activities. Due to the respect of professional secrecy, they are exempted of ascertaining the legal position or performing their task of defending or representing a client in judicial proceedings. Consequently, in order to protect the deontology and ethics of independent legal professionals (e.g., attorneys, notaries, tax advisers, accountants and auditors) if a client requests a legal advice concerning money laundering and/or potential terrorist financing, the legal professional is a subject to an application to FIU. The purpose of this legislative structure confirms the legal and ethical code of conduct which protects both, the legal professionals and their clients from an unlawful conduct. Every country has its own specific norms regarding the legislation creation, attitude towards the obligations of legal professionals and the consequences of getting involved into the proceedings regarding money laundering and terrorism financing. It is hard to imagine that the process of money laundering through legal professionals takes place within the same numerical frames into the two countries, one of which has many times more suspicious transactions reports then the other. However, the potential damaging consequence to a country carrying a burden of ease of potential illegal activity is twofold - potential for the future illegal investment as well as the notion of legal professionals’ deontology distortion.

Izvorni jezik
Engleski

Znanstvena područja
Pravo

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