Feds May More Closely Scrutinize Attorney-Client Accounts to Close Money-Laundering Loopholes
A federal report detailing how African politicians and their families used lawyers and others to evade U.S. money laundering laws has federal authorities poised to more closely scrutinize attorney-client bank accounts.
The 325-page report by the U.S. Senate Permanent Subcommittee on Investigations revealed that Chicago-based Sidley Austin transferred about $21 million for a government official in Equatorial Guinea who long had been suspected of misappropriating the country’s oil and timber wealth for personal again, the Chicago Tribune reports.
According to the Tribune, the report recommends that lawyers certify that their attorney-client accounts do not accept suspect funds involving politically exposed persons, aka PEPs, who have been flagged for dubious activities. Such certifications could prove problematic for large international law firms with foreign clients.
“Larger law firms are certainly more likely to come into contact with suspicious transactions where money laundering could be facilitated,” Jeffrey Cramer, a former federal prosecutor who heads the Chicago office of risk-consultancy Kroll, told the Tribune.
The report makes clear that Sidley notified the Justice Department about the $21 million wire transfer to make sure its handling of the money didn’t violate the law.
Related:
Am Law Daily: “Sidley, Solo Lawyers Helped Corrupt African Official on U.S. Buying Spree”
U.S. Senate (news release): “Investigations Subcommittee Holds Hearing on Keeping Foreign Corruption Out of the United States: Four Case Histories”
