"EVER DECREASING CIRCLES?" Developments in Anti-Money Laundering

The Red Lion Lecture series is organised by Red Lion Chambers and hosted in collaboration with The Dickson Poon School of Law, King's College London.

Abstract

Over the last few years, money laundering has received increased attention from the media, the UK Government and law enforcement agencies. Television series such as Breaking Bad, McMafia and Billions have made money laundering mainstream and a part of the public consciousness.

Significant data leaks have generated widespread media coverage and triggered investigations by law enforcement. The Government and law enforcement have also increasingly focused on the role of the regulated sector in alleged money laundering schemes. In tandem, new AML legislation has been appearing on the statute books and we have seen some significant appellate court decisions in Rogers and in GH.

There are mixed views of the UK’santi-money laundering framework. In December 2018, the Financial Action Task Force reported on its evaluation of the UK and the UK scored very well. This rating was met with some raised eyebrows as regulated firms and legal practitioners have become increasingly frustrated with the UK’s regime, particularly as it pertains to suspicious activity reports (“SARs”). Each year the number of SARs filed increases and research suggests that very few of the SARs filed have immediate utility for law enforcement. While it may be the case that some SARs will be useful in the future, many stakeholders supported reform of the regime. The Law Commission has carefully examined the case for reform in relation to our SAR regime. While the Law Commission has made some suggestions in relation to reform, it does not advocate widespread change. Instead, its proposals set out tweaks to the regime and may have the effect of simply postponing more sweeping reforms to a later date.

This lecture will examine:

• The key proposals set out in the Law Commission’s report in relation to reform and how these might work in practice;
• The problem of too many SARs and a potential solution other than law reform in the form of public-private partnerships;
• The low bar for suspicion and the practical difficulties it raises in relation to the reporting of money laundering concerns;
• Pragmatic decisions by the courts in relation to criminal conduct often have unintended effects for regulated firms. We examine the problem of mixed funds and the decision in Causey;
• To whom does the Proceeds of Crime Act 2002 (“POCA”) apply? The extra-territorial reach of the statute may be very broad indeed following the Court of Appeal decision in Rogers, but was Rogers wrongly decided?; and
• Overseas Cannabis Investment – the new Spanish bullfighter problem. How do firms approach this issue?

Speaker Biographies

Allison Clare (Red Lion Chambers) has expertise in corporate criminal liability and deferredprosecution agreements (including Standard Bank and Rolls Royce),complex market frauds, international corruption and LPP. Over the last10 years she has acted for corporates and individuals in cases of money laundering, fraud and corruption.

Recently advising a UK plc on an SFO money laundering investigation and individual law firms on steps to be taken in specific transactions involving AML concerns. Allison has acted in numerous confiscation proceedings including as leading junior in those following multi-million investment fraud. Allison authors chapters within OUP’s Montgomery & Ormerod on Fraud (including on LPP) and Archbold. She has specialised in all aspects of complex fraud, corruption and corporate crime over the last 15 years. Her work ethic, intellectual rigour and sound commercial judgment make her well placed to represent both corporate entities and individuals in respect of all white collar crimes.

Jonah Anderson (Partner of White & Case) advises on sensitive financial crime issues and helps clients navigate the criminal and regulatory landscape, with a focus on bribery and corruption, fraud, tax evasion and anti-money laundering law and regulation. Jonah regularly advises firms in the regulated sector regarding AML systems and controls, including obligations to file SARs.

He has acted in relation to injunctive proceedings regarding the suspension of bank accounts. Jonah has experience of conducting internal investigations and reviews in relation to money laundering issues in the UK, the US, Latin America, Asia and Africa. He also advises corporates and individuals on investigations and prosecutions by the UK authorities which relate to money laundering or have a money laundering element.

Jonah is a frequent speaker and commentator on AML issues and has been quoted in the Financial Times and the Times amongst other publications.