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...

Full description

Saved in:
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
Tags: Add Tag
No Tags, Be the first to tag this record!
Abstract 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’.
AbstractList 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’.
Author Hofmann, Robin
Lustenberger, Livio
Author_xml – sequence: 1
  givenname: Robin
  orcidid: 0000-0003-4968-1313
  surname: Hofmann
  fullname: Hofmann, Robin
– sequence: 2
  givenname: Livio
  surname: Lustenberger
  fullname: Lustenberger, Livio
BookMark eNptkduKFDEQhoOs4O7qlS_Q4KX0mGMn7Y0sg4eFkRVZr0MOlTZDm4xJRpi3t3tHFhGvUim--uvwX6GLlBMg9JLgDcFEvpnm_YZiyjYCP0GXFEvSK0bpxV_xM3RV6x5jJgUdLtH3r3DIpcU0dXd2jpNpMafahVy6m9ZySXCqXUzd56XRqduZY_JQVnprKtS3j1C_nSOk1n0p8VecYYLu20ouf6j1WODdc_Q0mLnCiz_vNbr_8P5--6nf3X283d7sescG3nrDg5Ne0kGRMFI2WOO5l6PAJoC342CJt3Ycg8PMgXBWBSZt4M4B885wdo1uz7I-m70-lPjDlJPOJuqHRC6TNsu6bgbNlDAqBM6CJdwJokYl_OiAYOvwgFetV2etQ8k_j1Cb3udjScv0miqusOSDkAv1-ky5kmstEB67EqxXV_Tiil5d0QIvNPmHdrE9HL0VE-f_1vwG8eqUOg
CitedBy_id crossref_primary_10_22367_jem_2025_47_11
ContentType Journal Article
Copyright The Author(s), 2023. Published by Cambridge University Press on behalf of the German Law Journal. This work is licensed under the Creative Commons Attribution License This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited. (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.
Copyright_xml – notice: The Author(s), 2023. Published by Cambridge University Press on behalf of the German Law Journal. This work is licensed under the Creative Commons Attribution License This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited. (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.
DBID AAYXX
CITATION
0-V
3V.
7TQ
7XB
88J
8BJ
8FK
ABUWG
AFKRA
ALSLI
AZQEC
BENPR
CCPQU
DHY
DON
DPSOV
DWQXO
FQK
GNUQQ
JBE
KC-
M2L
M2R
PHGZM
PHGZT
PKEHL
POGQB
PQEST
PQQKQ
PQUKI
PRINS
PRQQA
Q9U
DOA
DOI 10.1017/glj.2023.50
DatabaseName CrossRef
ProQuest Social Sciences Premium Collection
ProQuest Central (Corporate)
PAIS Index
ProQuest Central (purchase pre-March 2016)
Social Science Database (Alumni Edition)
International Bibliography of the Social Sciences (IBSS)
ProQuest Central (Alumni) (purchase pre-March 2016)
ProQuest Central (Alumni)
ProQuest Central UK/Ireland
Social Science Premium Collection
ProQuest Central Essentials
ProQuest Central
ProQuest One Community College
PAIS International
PAIS International (Ovid)
Politics Collection
ProQuest Central
International Bibliography of the Social Sciences
ProQuest Central Student
International Bibliography of the Social Sciences
ProQuest Politics Collection
Political Science Database
Social Science Database
ProQuest Central Premium
ProQuest One Academic
ProQuest One Academic Middle East (New)
ProQuest Sociology & Social Sciences Collection
ProQuest One Academic Eastern Edition (DO NOT USE)
ProQuest One Academic (retired)
ProQuest One Academic UKI Edition
ProQuest Central China
ProQuest One Social Sciences
ProQuest Central Basic
DOAJ Directory of Open Access Journals
DatabaseTitle CrossRef
ProQuest Sociology & Social Sciences Collection
ProQuest Central Student
ProQuest One Academic Middle East (New)
ProQuest Central Essentials
ProQuest Social Science Journals (Alumni Edition)
ProQuest Central (Alumni Edition)
ProQuest One Community College
Politics Collection
Sociology & Social Sciences Collection
ProQuest Central China
ProQuest Central
International Bibliography of the Social Sciences (IBSS)
ProQuest Central Korea
ProQuest Central (New)
Social Science Premium Collection
ProQuest Political Science
ProQuest One Social Sciences
ProQuest Central Basic
ProQuest One Academic Eastern Edition
ProQuest Social Science Journals
ProQuest Social Sciences Premium Collection
ProQuest One Academic UKI Edition
PAIS International
ProQuest Politics Collection
ProQuest One Academic
ProQuest One Academic (New)
ProQuest Central (Alumni)
DatabaseTitleList CrossRef
ProQuest Sociology & Social Sciences Collection
Database_xml – sequence: 1
  dbid: DOA
  name: DOAJ Directory of Open Access Journals
  url: https://www.doaj.org/
  sourceTypes: Open Website
– sequence: 2
  dbid: BENPR
  name: ProQuest Central
  url: https://www.proquest.com/central
  sourceTypes: Aggregation Database
DeliveryMethod fulltext_linktorsrc
Discipline Law
EISSN 2071-8322
EndPage 837
ExternalDocumentID oai_doaj_org_article_385a8ff43fb14c518985d9ce10bc0604
10_1017_glj_2023_50
GeographicLocations England
United Kingdom--UK
Switzerland
Europe
Germany
GeographicLocations_xml – name: Switzerland
– name: England
– name: Germany
– name: United Kingdom--UK
– name: Europe
GroupedDBID .4L
09C
09D
0R~
2-G
2WC
6DY
AABWE
AACLI
AAGFV
AALKF
AAOIO
AAPYI
AASVR
AAYXX
ABACO
ABFRF
ABGDZ
ABUWG
ABXHF
ACAJB
ACDLN
ACFCP
ACGFO
ACMJI
ADBBV
ADKIL
ADOVH
ADUOI
ADVJH
AEBAK
AEFWE
AEGXH
AFACB
AFFHD
AFKQG
AFKRA
AFKRZ
AFLVW
AFZFC
AGABE
AGHGI
AGJUD
AGTDA
AHRGI
AIAGR
AJPFC
AKMAY
ALMA_UNASSIGNED_HOLDINGS
ALSLI
AOWSX
AZQEC
BBLKV
BCNDV
BENPR
BHRNT
CCPQU
CCQAD
CITATION
CJCSC
DOHLZ
DPSOV
DWQXO
FM.
FRJ
FRS
GCT
GNUQQ
GROUPED_DOAJ
HCSNT
HISYW
HOCAJ
HOVLH
IKXGN
IPYYG
JHPGK
JOSPZ
JRMXA
LGEZI
LMKDQ
LOTEE
LXHRH
M2L
M2R
M~E
NADUK
NXXTH
OK1
P2P
PHGZM
PHGZT
PQQKQ
PRQQA
RCA
RHO
ROL
RWL
RXW
TAA
TAC
TAF
TR2
UVLOZ
W2G
WFFJZ
X6Y
0-V
3V.
7TQ
7XB
8BJ
8FK
DHY
DON
FQK
JBE
KC-
PKEHL
POGQB
PQEST
PQUKI
PRINS
Q9U
ID FETCH-LOGICAL-c364t-a4fc7d72681f9236bad4d7950afedb96b1dbb99fc03ce5cb8f37bf4cce3dca43
IEDL.DBID M2L
ISICitedReferencesCount 0
ISICitedReferencesURI http://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=Summon&SrcAuth=ProQuest&DestLinkType=CitingArticles&DestApp=WOS_CPL&KeyUT=001024758600001&url=https%3A%2F%2Fcvtisr.summon.serialssolutions.com%2F%23%21%2Fsearch%3Fho%3Df%26include.ft.matches%3Dt%26l%3Dnull%26q%3D
ISSN 2071-8322
IngestDate Fri Oct 03 12:18:19 EDT 2025
Sat Nov 08 02:25:23 EST 2025
Sat Nov 29 05:44:49 EST 2025
Tue Nov 18 22:31:07 EST 2025
IsDoiOpenAccess true
IsOpenAccess true
IsPeerReviewed true
IsScholarly true
Issue 5
Language English
License http://creativecommons.org/licenses/by/4.0
LinkModel DirectLink
MergedId FETCHMERGED-LOGICAL-c364t-a4fc7d72681f9236bad4d7950afedb96b1dbb99fc03ce5cb8f37bf4cce3dca43
Notes ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ORCID 0000-0003-4968-1313
OpenAccessLink https://doaj.org/article/385a8ff43fb14c518985d9ce10bc0604
PQID 2848074657
PQPubID 2049688
PageCount 13
ParticipantIDs doaj_primary_oai_doaj_org_article_385a8ff43fb14c518985d9ce10bc0604
proquest_journals_2848074657
crossref_primary_10_1017_glj_2023_50
crossref_citationtrail_10_1017_glj_2023_50
PublicationCentury 2000
PublicationDate 2023-08-01
PublicationDateYYYYMMDD 2023-08-01
PublicationDate_xml – month: 08
  year: 2023
  text: 2023-08-01
  day: 01
PublicationDecade 2020
PublicationPlace Toronto
PublicationPlace_xml – name: Toronto
PublicationTitle German law journal
PublicationYear 2023
Publisher Cambridge University Press
Publisher_xml – name: Cambridge University Press
SSID ssj0037526
Score 2.2351813
Snippet 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...
SourceID doaj
proquest
crossref
SourceType Open Website
Aggregation Database
Enrichment Source
Index Database
StartPage 825
SubjectTerms 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
SummonAdditionalLinks – databaseName: DOAJ Directory of Open Access Journals
  dbid: DOA
  link: http://cvtisr.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwrV1LSwMxEA5aPHgRn1itkkNPwtbdJtkkXqQWi4dSe-iht5BkE62UIm2t-O-dbLaloODF6zJshvmSeYTMNwg1ibeGpV4mudBQoEjjEu05SZwWqbSuYITZctgEHwzEeCyHW6O-wpuwSA8cDXdLBNPCe0q8yahlmZCCFfCXLDU2EL8E7wtZz7qYij6YcNbOq268QBD9Mn1rhTnhrdBevxV_Spr-H164DC29Q3RQ5YS4E3U5Qjtudox2-_rzBL3GBBniC34205IOA7YJhkwTd5ZQLs8ACDyZYTia7gv3dWgJCzd1uAvRaXG3EUq609D4iIfzyWoSbgpwOfAIx-7Aubs_RaPe46j7lFTDERJLcrpMNPWWF7ydi8xDkpYbXdCCS5Zq7wojc5MVxkjpbUqsY9YIT7jx1FpHCqspOUO1Gah2jrCQuRPcAGpUUsh_ZEqMF5a3HeXcpKKObtYWU7YiDg_zK6YqvhDjCsyrgnkVS-uouRF-j3wZv4s9BNNvRALJdfkBoFcV9Oov6OuosQZOVSdvoSDcBn6fnPGL_1jjEu0HleOTvwaqLecf7grt2dVysphfl5vuG9cs3ro
  priority: 102
  providerName: Directory of Open Access Journals
Title Reporting Obligations for Attorneys in Money Laundering Cases: Attorney-Client Privilege Under Pressure?
URI https://www.proquest.com/docview/2848074657
https://doaj.org/article/385a8ff43fb14c518985d9ce10bc0604
Volume 24
WOSCitedRecordID wos001024758600001&url=https%3A%2F%2Fcvtisr.summon.serialssolutions.com%2F%23%21%2Fsearch%3Fho%3Df%26include.ft.matches%3Dt%26l%3Dnull%26q%3D
hasFullText 1
inHoldings 1
isFullTextHit
isPrint
journalDatabaseRights – providerCode: PRVAEN
  databaseName: Cambridge University Press Wholly Gold Open Access Journals
  customDbUrl:
  eissn: 2071-8322
  dateEnd: 99991231
  omitProxy: false
  ssIdentifier: ssj0037526
  issn: 2071-8322
  databaseCode: IKXGN
  dateStart: 20000101
  isFulltext: true
  titleUrlDefault: http://journals.cambridge.org/action/login
  providerName: Cambridge University Press
– providerCode: PRVAON
  databaseName: DOAJ Directory of Open Access Journals
  customDbUrl:
  eissn: 2071-8322
  dateEnd: 99991231
  omitProxy: false
  ssIdentifier: ssj0037526
  issn: 2071-8322
  databaseCode: DOA
  dateStart: 20190101
  isFulltext: true
  titleUrlDefault: https://www.doaj.org/
  providerName: Directory of Open Access Journals
– providerCode: PRVHPJ
  databaseName: ROAD: Directory of Open Access Scholarly Resources
  customDbUrl:
  eissn: 2071-8322
  dateEnd: 99991231
  omitProxy: false
  ssIdentifier: ssj0037526
  issn: 2071-8322
  databaseCode: M~E
  dateStart: 20000101
  isFulltext: true
  titleUrlDefault: https://road.issn.org
  providerName: ISSN International Centre
– providerCode: PRVPQU
  databaseName: Political Science Database
  customDbUrl:
  eissn: 2071-8322
  dateEnd: 99991231
  omitProxy: false
  ssIdentifier: ssj0037526
  issn: 2071-8322
  databaseCode: M2L
  dateStart: 20190201
  isFulltext: true
  titleUrlDefault: https://www.proquest.com/politicalscience
  providerName: ProQuest
– providerCode: PRVPQU
  databaseName: ProQuest Central
  customDbUrl:
  eissn: 2071-8322
  dateEnd: 99991231
  omitProxy: false
  ssIdentifier: ssj0037526
  issn: 2071-8322
  databaseCode: BENPR
  dateStart: 20190201
  isFulltext: true
  titleUrlDefault: https://www.proquest.com/central
  providerName: ProQuest
– providerCode: PRVPQU
  databaseName: Social Science Database
  customDbUrl:
  eissn: 2071-8322
  dateEnd: 99991231
  omitProxy: false
  ssIdentifier: ssj0037526
  issn: 2071-8322
  databaseCode: M2R
  dateStart: 20190201
  isFulltext: true
  titleUrlDefault: https://search.proquest.com/socscijournals
  providerName: ProQuest
link http://cvtisr.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwpV1LbxMxEB7RlgMX3ohAiXzoCWnLbmyvbS5VG6XiEEKEeujN8rMERWnZhCIu_HY8Xicggbhw2YN3DtZ-45nx7Mw3AEc0OsvrqKpWmnRBUTZUJgpaBSNr5YLnlLs8bELMZvLyUs1Lwm1dyiq3NjEban_tMEf-JplR5G1puTi5-VLh1Cj8u1pGaOzBQYOxNpbujaZbS0wFH7WlJw9poq-Wn49xWvgxNtn_5oUyWf8ftjg7mPMH_7u1h3C_hJbktNeFR3AnrB7D3tR8ewKf-jg7uSnywS4zq0bSNpICVnK6SbfuVcKTLFYknfDwnUwNdpZhwo-Mk5Nbv90JVeMl9k-Sebe4XWDCgeS5SaRvMuzCyVO4OJ9cjN9VZcZC5WjLNpVh0QkvRq1sYor1Wms880Lx2sTgrWpt461VKrqausCdlZEKG5lzgXpnGH0G-6u0tedApGqDFDaBzxRLYZSqqY3SiVFgQthaDuD19pNrV_jHcQzGUveFZkInfDTio3k9gKOd8E1Pu_F3sTPEbieCXNl54bq70uXoaSq5kTEyGm3DHG-kktwnPWxq65A6aACHW1h1OcBr_QvTF_9-_RLu4Wb6msBD2N90X8MruOtuN4t1N4SDs8ls_nGYr_rDrJ35iSvvf0x-Akco8dA
linkProvider ProQuest
linkToHtml http://cvtisr.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMw1V1Nb9QwEB21BQkufCMWCvhQLkgpSWzHNhKqykLVqmHpYQ-9WbZjl0Wr3ZINrfqj-I948rEggbj1wDUZRU78_GbszMwD2KHBWZ4GlRTSxA2Ksj4xQdDEG5kq5ytOuWvFJsRkIk9P1ckG_BhqYTCtcuDElqirpcMz8jeRRrFvS8HF3vm3BFWj8O_qIKHRweLYX13GLdvq3dGHOL-v8vzg43R8mPSqAomjBWsSw4ITlcgLmYUY3RTWVKwSiqcm-MqqwmaVtUoFl1LnubMyUGEDc87TyhlG42M34QbDilHMFMzLgfip4HnRlwBiV-qz-dddFCffxZr-35xeqw3wB_W3_uzg7n_2Je7BnT5wJvsd0u_Dhl88gM3SXD6EL90uIjph8tnO254hcS2RGI6T_aZZ1ouIVjJbkMhf_oqUBuvm8DiTjKMLX71dGyXjOVaHkpN6djHD4xTSqkKRroSy9nuPYHodb_gYthZxaE-ASFV4KWyENlMsBokqpTZIJ3LPhLCpHMHrYYa167uro8jHXHdpdEJHOGiEg-bpCHbWxuddU5G_m71HqKxNsBN4e2FZn-meWDSV3MgQGA02Y45nUklexVWWpdZhY6QRbA8o0j09rfQvCD399-2XcOtw-qnU5dHk-BncxoF12Y_bsNXU3_1zuOkumtmqftEuBQL6mgH3E3EmTl0
linkToPdf http://cvtisr.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMw1V1Lb9QwEB61BaFeeCMWCvhQLkgpSWzHNhKqypYVVZdlDz30ZtmOXRatdttsaNWfxr9jnMeCBOLWA9dkFDnxNy9nZj6AXRqc5WlQSSENJijK-sQEQRNvZKqcLznlriGbEJOJPD1V0w340ffCxLLK3iY2hrpcunhG_hbNaJzbUmACH7qyiOnhaP_8IokMUvFPa0-n0ULk2F9fYfq2en90iHv9Os9HH0-Gn5KOYSBxtGB1YlhwohR5IbOAkU5hTclKoXhqgi-tKmxWWqtUcCl1njsrAxU2MOc8LZ1hFB-7CbcE4zySJ3zOx70ToILnRdcOGCdUn82_7UWi8r3Y3_-bA2x4Av5wA41vG937j7_KfbjbBdTkoNWAB7DhFw9hc2yuHsHXNrtA50y-2HkzSwR1jGCYTg7qelktEMVktiBo1_w1GZvYTxePOckQXfvq3VooGc5j1yiZVrPLWTxmIQ1bFGlbKyu__xhObuINn8DWApf2FIhUhZfCIuSZYhg8qpTaIJ3IPRPCpnIAb_rd1q6buh7JP-a6La8TGqGhIzQ0TwewuxY-b4eN_F3sQ4TNWiROCG8uLKsz3RkcTSU3MgRGg82Y45lUkpeofVlqXRyYNICdHlG6M1sr_QtOz_59-xXcQZzp8dHk-Dlsx3W1RZE7sFVX3_0LuO0u69mqetloBQF9w3j7CUQcVxs
openUrl ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.atitle=Reporting+Obligations+for+Attorneys+in+Money+Laundering+Cases%3A+Attorney-Client+Privilege+Under+Pressure%3F&rft.jtitle=German+law+journal&rft.au=Hofmann%2C+Robin&rft.au=Lustenberger%2C+Livio&rft.date=2023-08-01&rft.pub=Cambridge+University+Press&rft.eissn=2071-8322&rft.volume=24&rft.issue=5&rft.spage=825&rft.epage=837&rft_id=info:doi/10.1017%2Fglj.2023.50&rft.externalDBID=HAS_PDF_LINK
thumbnail_l http://covers-cdn.summon.serialssolutions.com/index.aspx?isbn=/lc.gif&issn=2071-8322&client=summon
thumbnail_m http://covers-cdn.summon.serialssolutions.com/index.aspx?isbn=/mc.gif&issn=2071-8322&client=summon
thumbnail_s http://covers-cdn.summon.serialssolutions.com/index.aspx?isbn=/sc.gif&issn=2071-8322&client=summon