Anti-Money Laundering and Terrorist Financing in the Canadian Legal Profession
The Federation of Law Societies of Canada recently developed an online learning program to provide guidance to legal professionals on how to mitigate money laundering and terrorist financing risks and comply with their legal and regulatory obligations. As noted on the Federation’s website:
The practice of law exposes legal professionals to unique risks in relation to money laundering and terrorist financing. Although some practice areas present higher risks, any legal professional engaged in financial transactions may be targeted by criminals seeking to launder money or finance terrorist activities.
To combat these threats, legal professionals must understand the risks that may arise in their legal practice and be aware of their legal and regulatory obligations. Without such risk-based awareness and knowledge of the rules, they may find themselves unwittingly facilitating or participating in criminal activity.
The online program includes interactive tools like scenarios, videos, and quizzes. It is divided into five modules designed to be completed in order from 1 to 5. To complete the program, you must finish all five modules:
Understanding the Problem of Money Laundering and Terrorist Financing: An overview of the entire program and explains the threats of money laundering and terrorist financing, how they are regulated, and why legal professionals need to be aware of the problem.
Assessing and Managing Money Laundering Risks: Describes specific money laundering vulnerabilities and risks in providing legal services, the duty to apply risk appropriate management measures, and how to identify, assess and respond to risks.
Key Due Diligence Requirements: Describes the requirements under the Model Rule on Client Identification and Verification and how to comply.
Proper Use of Trust Accounts: Describes the requirements under the Model Trust Accounting Rule, how to comply, and implementing proper trust account management.
Cash Transactions: Describes the requirements under the Model Rule on Cash Transactions and how to comply.
Note that the program may be eligible for CPD credit from your law society.