Managing Ethical Risks: Due Diligence and "Dirty Money" in Legal Practice

The U.S. has been thought to be a money laundering haven for a number of years. Recently, regulations have been implemented to require reporting of real estate and corporate formation transactions which have and will put additional burdens on attorneys. In addition, there have been a number of ABA Model Rule changes and Ethics Opinions requiring attorneys to conduct enhanced due diligence for new and existing clients. 

This program will review the current criminal and civil framework, as well as newly enacted Model Rule and Ethics Opinions placing substantial additional due diligence obligations upon counsel. The changes will be highlighted by a series of hypotheticals involving client engagement and client monitoring by counsel.

Learning Objectives:

1. Explore the basics of ethical and legal obligations facing attorneys as a result of existing legislation and new FinCEN-proposed reporting obligations

2. Identify when an attorney must do enhanced due diligence for a new or existing client relationship

3. Discuss civil and criminal risks to the client and the attorney

4. Identify existing laws and regulations, and proposed new reporting requirements