Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Business Crimes BulletinKickerFeaturesTopicsCommercial LawLitigationSectionsNewsLJN Newsletters

Lawyers and Money Laundering

By Howard W. Goldstein
May 27, 2008

As anti-money laundering enforcement has become an international priority, financial institutions around the world increasingly rely on lawyers to help them navigate stringent anti-money laundering regulations enforced by criminal penalties. While the duty of lawyers representing financial institutions in the United States is almost solely toward their clients, in the European Union, lawyers have affirmative obligations to report suspected money-laundering activity to government authorities. In other words, lawyers may be involuntarily conscripted as enforcement agents or 'gatekeepers' at the institutions they represent. American lawyers in the European offices of U.S.-based 'international' law firms are not exempt. In some countries, they face criminal liability if they fail to follow 'know your customer' protocols or fail to report suspicious transactions. Meanwhile, in the United States, such 'gatekeeper' reporting obligations have met stiff resistance by the organized bar and have not been implemented.

Sometimes lost in the debate about 'gatekeeping' is the fact that lawyers in the United States have been, and continue to be, prosecuted for substantive violations of the money-laundering statutes. And as companies become both more sophisticated and more global in their operations, the prosecution possibilities expand. As one commentator noted: 'Lawyers are much more involved in advising clients about how to conduct their business than ever before due to the pervasiveness of the regulation of economic activity. When the lawyer moves from the courtroom to the boardroom, the possibility of a lawyer becoming enmeshed in questionable conduct increases substantially.' Henning, Targeting Legal Advice 54 Am. U.L. Rev., 669, 686 (2005).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Protecting Innovation in the Cyber World from Patent Trolls Image

With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.