Financial Services Law 43 273
Assessed Course Work Part 1
The issue in question in this particular case is whether or not a professional legal adviser can be deemed in breach of the Proceeds of Crimes Act 2002 when negotiating a financial sum that he or she knows includes laundered money. The client has requested representation against her husband for the purpose of gaining a financial settlement over a proposed divorce. During instruction, the client revealed that her husband had unspecified amounts of undeclared earnings that the Inland Revenue had no knowledge of. The role of the lawyer must be scrutinized and it must be determined whether or not he is in violation if he chooses to continue representing his client with the understanding an act of laundering may take place. The issues of disclosure and professional privilege under the Proceeds of Crime Act 2002 are of particular importance here.
Part VII of the Proceeds of Crime Act 2002 outlines legislation related to Money laundering Offences. Section 330 of this act places a duty on employees of a regulated sector to report money laundering activity when they "know or suspect" a person is engaged in such an act or when they have "reasonable grounds for knowing or suspecting" that a person is engaging in the activity. Failure to disclose information in these cases relates to money laundering offences under sections 327 (Concealing Criminal Property), section 328 (Arrangements) and section 329 (Acquisition, Use and Possession) of the Act.
There are three principle criteria which must be established to prove the offence is taking place. It is necessary to show that "information came to a person in the course of business in the regulated sector" . A business in the regulated sector ...