Money laundering - deja vu

EU is to adopt third directive on money laundering despite opposition from professional bodies

The Journal, July 2005, page 43

---

The EU is to adopt the third Money Laundering Directive despite a call from the Presidents of the UK Law Societies, and their EU counterparts, for a delay pending an evaluation of the impact of the existing legislation, on the legal profession in particular. Lobbying by the Law Societies and the CCBE did result in a commitment to review the treatment of lawyers and other professionals within the next four years.

The directive brings in a host of new definitions, covering diverse concepts such as terrorism, beneficial owner, politically exposed persons (PEPs), serious crime and business relationship. It introduces considerable details about procedures for the identification and verification of clients, and an obligation to understand the underlying ownership of any property or assets by identifying beneficial owners and depending on the level of risk, verifying their identity. 

The directive concedes that lawyers should be able to dissuade their client from engaging in illegal activity, without falling foul of the tipping-off provisions. A new recital states that the provisions against tipping off cannot interfere with legal professional privilege. 

The discontent with the operation of the second directive, in particular its erosion of lawyers’ ethical duties, is evidenced by the legal challenges mounted in various EU member states.

Current News 05.09.08 PM changes tack on tax-raising powers Allowing Scottish Parliament more accountability would strengthen the UK, says Brown 05.09.08 Summary justice reform success, claims Angiolini Lord Advocate's letter says figures to date indicate new system working 04.09.08 Advocates in Aberdeen launch new website Internet presence aimed at increasing awareness of Society of Advocates in the north east 04.09.08 Legal profession, local income tax top bill list Scottish Government unveils legislative programme for 2008-09 04.09.08 Step up to associate for Fife lawyer Sue Arrowsmith promoted at Murray Donald Drummond Cook LLP 04.09.08 Prosecution inspectorate publishes annual report Review pending of new fiscal fine system 03.09.08 Society welcomes Legal Profession Bill Hopes that bill will provide for alternative business structures for law firms 03.09.08 'No proof that plaques harmful': insurance lawyers Industry's legal team argue against proposed law extending compensation 03.09.08 Commissioner orders release of tender information Council not justified in claim that Street Outreach documents must be kept secret 02.09.08 Stamp duty break for lower value properties 12-month threshold of £175,000 among government moves to buck up housing market 01.09.08 Government publishes sentencing proposals Judges and sheriffs would need to reveal reasons for departing from guidelines 01.09.08 Revenue reminds of new tax return date 31 October now deadline for paper returns 01.09.08 Blackadders' review results in 44 job losses Two branches also close as firm consolidates to combat property market troubles 01.09.08 Area procurator fiscal appointment for Central Michelle Macleod takes on new role 01.09.08 Partner catch for Ledingham Chalmers Neil Anderson appointed, while Marysia Lewis takes up floating sheriff appointment