ANTIMONEY LAUNDERING ETHICS AND PROFESSIONAL JUDGMENT A TEACHING

ANTI-MONEY LAUNDERING, ETHICS AND PROFESSIONAL JUDGMENT: A TEACHING EXERCISE 2011 International Bar Association Conference Professor Clark D. Cunningham Vice-Chair, IBA Academic and Professional Development Committee Director, National Institute for Teaching Ethics and Professionalism (USA) W. Lee Burge Chair of Law & Ethics Georgia State University (Atlanta, USA) cdcunningham@gsu. edu Home Page: www. Clark. Cunningham. org

Teaching Exercise Developed By n Clark Cunningham n Emma Oettinger, Anti-Money Laundering Policy Officer, Law Society of England & Wales n Prof. Nigel Duncan, City Law School, London n Produced with the assistance of the international law firm of Freshfields Bruckhaus Deringer 2

The Videos n Roles: – Nigel Grayson, Solicitor, partner in a small firm in Durham, played by Nigel Duncan – Emma Patrick, Client – Estate Agent in Durham, played by Emma Oettinger n When: Friday, October 28 at 2: 30 pm n Where: Solicitor’s office in Durham, England n Part 1 (2: 41 minutes) n Part 2 (3: 50 minutes) n Part 3 (5: 14 minutes) 3

Part 1 (2: 41 minutes) 4

Part 1 Discussion Questions n In your jurisdiction, should the lawyer do further investigation before completing the sale? – If so, what should he investigate? n In your jurisdiction, if the lawyer completes the sale without further investigation, does he risk – Civil liability ? – Criminal prosecution ? – Loss of license to practice law ? 5

Part 2 (3: 50 minutes) 6

Part 2 Discussion Questions n In your jurisdiction, if the lawyer now completes the sale does he risk – Civil liability ? – Criminal prosecution ? – Loss of license to practice law ? 7

“Solicitor Found Guilty” n n n On 26 th July 2004 Donna and Peter Davis from Yardley, Birmingham, were convicted of conspiring to supply Class A and B drugs and sentenced to 7 & 12 yrs A property owned by them had been sold following their conviction for less than a third of the market value. The property was purchased by Leslie John Pattison an estate agent Pattison paid £ 43, 000 for the property (the outstanding mortgage on the property) which had been purchased two years earlier for £ 83, 000. The conveyance of the property was handled by Phillip Jon Griffiths, a solicitor practicing in Shrewsbury. 8

“Solicitor Found Guilty” n n n All four were charged with money laundering Griffiths in addition was charged with failing, as a member of the regulated sector, to make a disclosure, suspecting money laundering offences were taking place. Pattison was found guilty of acquiring criminal property and sentenced to 3 years Griffiths was cleared of money laundering He was convicted of failing to disclose a suspicious transaction and sentenced to 15 months imprisonment 9

At Sentencing the Judge Said: n “You were unable to say no to Mr. Pattison, with whom you had a close relationship” n “You took a chance and you were discovered” n “Because of your connection with Pattison, you closed your eyes … n to the clearest of evidence. ” 10

On Appeal Regina v. Philip Griffiths n Royal Courts of Justice – Court of Appeal Criminal Division n Decided 6 September 2006 n Citation: [2006] EWCA Crim 2155 n Griffith’s sentence was reduced to 6 months n He also lost his license to practice law 11

Part 3 (5: 14 minutes) 12

Free Use of These Materials n You can download all three videos, the script, and this power point at n www. teachinglegalethics. org/content/AMLEthics n Free to copy, distribute, re-post on the web, and modify – Rewrite script for your jurisdiction – Re-record with new actors, in your language n As long as you provide attribution and do not use for a commercial purpose 13

Additional Resources n www. anti-moneylaundering. org (IBA website) n UK law: Anti-Money Laundering Practice Note, Law Society of England Wales (29 Oct 2009 132 pages) – Can find and download using the IBA’s Anti. Money Laundering website 14