NCJ Number
154311
Journal
International Financial Law Review Dated: (August 1989) Pages: 10-13
Date Published
1989
Length
4 pages
Annotation
This article examines some of the issues pertinent to countering money laundering through the requirement of specified disclosures from financial institutions and attorneys.
Abstract
The main problem perceived by the banks is the move to impose a duty of disclosure regarding a client's transactions with the banks. They are resisting the role of having to act as quasi-police officers to combat money laundering. Banks are caught between honoring their duty of confidentiality in relation to their clients and assisting in the tracking down of criminals and their funds. The solution most favored internationally is apparently to encourage banks to establish their own internal structure and to establish the identity of the client. Proponents of this approach believe that this will discourage money launderers and screen them out of banking institutions, provided all financial institutions comply with these requirements. Lawyers are also concerned about the erosion of attorney-client confidentiality under efforts to require civilian persons to report crime suspicions. A proposal by Saul Froomkin, whose job is to detect the flow of "dirty" money through Bermuda's banks, would require attorneys to report crime and suspicion of criminal activity by a client. An attorney would have a duty of specified disclosures that would take precedence over the duty of confidentiality.