Practice Notes

Obligations of Advocates & Solicitors in respect of Anti-Money Laundering and Anti - Terrorism Financing
Posted: 16 February 2005

With effect from 30 September 2004, it has become mandatory under the Anti-Money Laundering Act 2001 for advocates and solicitors to promptly report any suspicious transaction encountered in the course of preparing for, or carrying out, transactions involving the following range of activities:-

(a) buying and selling immovable property;
(b) managing clients' money, securities and other property;
(c) managing accounts including savings and securities accounts;
(d) organising contributions for the creation, operation or management of companies; and
(e) creating, operating or managing of legal entities or arrangements and buying and selling of business entities.

It has also become mandatory for an advocate and solicitor who acts as company secretary to report suspicious transactions encountered in the course of providing any of the following services to third parties:-

(a) acting as a formation agent of legal entities;
(b) acting as ( or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal entities;
(c) providing a registered office, business or accommodation, correspondence or administrative address of a company, a partnership or any other person or arrangement;
(d) acting as (or arranging for another person to act as) a trustee of an express trust; and
(e) acting as (or arranging for another person to act as) a nominee shareholder for another person.

Additional information (Source: Bar Council):
i. Overview of the Reporting Obligation Affecting Legal Practitioners & Compliance Framework; Draft form - Suspicious Transaction Report: [link]
ii. Guidelines on Anti- Money Laundering & Anti Terrorism Financing: [link]

 

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