Reporting Obligations for Attorneys in Money Laundering Cases: Attorney-Client Privilege Under Pressure?

With the publication of the Panama Papers in 2016, law firms and attorneys came under the spotlight of international anti-money laundering efforts. It became clear that attorneys, protected by the attorney-client privilege, play a significant role in concealing the origin of illicit funds and the co...

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Bibliographic Details
Published in:German law journal Vol. 24; no. 5; pp. 825 - 837
Main Authors: Hofmann, Robin, Lustenberger, Livio
Format: Journal Article
Language:English
Published: Toronto Cambridge University Press 01.08.2023
Subjects:
18th century
Attorney client privilege
Attorneys
Clients
Confidentiality
Crime
Criminal liability
Germany
Laundering of money
Law
Law firms
Legal professions
Money
Money Laundering
Obligations
Panama Papers
Politicians
Privileged communication
Privileges & immunities
Professional associations
Professions
Rule of law
Rules
Switzerland
Trials
England
United Kingdom > UK
Switzerland
Europe
Germany
ISSN:2071-8322, 2071-8322
Online Access:Get full text
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Summary:With the publication of the Panama Papers in 2016, law firms and attorneys came under the spotlight of international anti-money laundering efforts. It became clear that attorneys, protected by the attorney-client privilege, play a significant role in concealing the origin of illicit funds and the constructing of offshore company-schemes. The public outcry prompted legislators to hold these facilitators accountable and to prevent money-laundering activities by imposing reporting obligation on them, whenever there is the suspicion of a client being involved in illicit activities. Unsurprisingly, attorney and professional associations voiced considerable opposition to these legislative efforts claiming an erosion of the attorney client privilege and nothing less than an attack on the rule of law. This article examines the attorney-client privilege from a historical, empirical, and constitutional perspective. A brief analysis of the legal frameworks in Germany and Switzerland exemplifies how reporting obligations affect legal practice and what challenges exist for attorneys. Both countries are considered global hubs for money laundering activities. The legal concepts of holding attorneys accountable in the neighboring countries differ in some respects. In conclusion, it shows that the legal professions successfully managed to widely avoid a ‘responsibilization’.
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ISSN:2071-8322
2071-8322
DOI:10.1017/glj.2023.50