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Gov't wins bid for attorneys to fall under anti-money laundering reporting regime

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Finance Minister Dr. Nigel Clarke
By Halshane Burke 
 
The UK-based Privy Council has ruled that the requirement for attorneys to report breaches of the Proceeds of Crime Act is demonstrably justified and the regime does not breach constitutional rights.
 
The Jamaican Bar Association had sought to exert legal professional privilege to keep confidential all dealings with and information about clients, derived by the attorney in the course of engagement.
 
As the government stepped up efforts to combat money laundering, attorneys were being included in the requirement to share information on the acquisition and disposal of real estate or business and the creation of trusts to comply with international obligations in respect of money laundering and the financing of terrorist activities.
 
This in turn granted the General Legal Council the authority to ensure compliance with the requirement which would include examining documents and sharing such information with the relevant authorities.
 
The Bar Association had challenged the regime, however, this was dismissed by the Supreme Court. The Association then took the matter to the Court of Appeal, which ruled that aspects of the requirement contravened the right to privacy and freedom from search of property without valid justification.
 
The government then took the matter to the Privy Council for a ruling on the constitutionality of the new regime.
 
The UK-based law Lords, in the judgment handed down Thursday morning, said attorney-client confidence is no answer to the obligation to allow inspection of relevant documents or to answer questions in civil litigation.
 
They added that the General Legal Council does not have the power of search and seizure, noting that in the event that the council believes an attorney is not compliant, it will consider whether to take disciplinary action or make a report to the relevant authority.
 
The Privy Council therefore held that the regime's infringement of rights of privacy has been demonstrably justified and does not breach the constitutional rights of attorneys or their clients.
 
Game changer 
 
Finance Minister Dr. Nigel Clarke has said the Privy Council ruling is a game changer in the country's quest to protect the financial system from those who seek to launder the proceeds of criminal activity.
 
Dr. Clarke said the decision represents the firm commitment and resolve of the government to bring anti-money laundering measures in line with international obligations.
 
He added that the government will be moving quickly to ensure all designated non-financial businesses and professions are compliant under Jamaica's anti-money laundering framework. 
 
He said the General Legal Council will resume the role of monitoring compliance by attorneys and resensitise attorneys on the suspicious transaction reporting regime.


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