Transcript AML-Ethics-Presentation(NIFTEP-Summer2012)

ANTI-MONEY LAUNDERING, ETHICS AND
PROFESSIONAL JUDGMENT:
A TEACHING EXERCISE
Nigel Duncan
City Law School, London (UK)
Clark Cunningham
Georgia State University College of Law
Atlanta, Georgia (USA)
Teaching Exercise Developed By
Clark Cunningham
 Emma Oettinger, Anti-Money Laundering
Policy Officer, Law Society of England &
Wales
 Nigel Duncan
 Produced with the assistance of the
international law firm of Freshfields
Bruckhaus Deringer

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The Videos

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
When: Friday, October 28 at 2:30pm
 Where: Solicitor’s office in Durham,
England
 Part 1 (2:41 minutes)
 Part 2 (3:50 minutes)
 Part 3 (5:14 minutes)
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Part 1 (2:41 minutes)
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Part 1 Discussion Questions

In your jurisdiction, should the lawyer do
further investigation before completing the
sale?
– If so, what should he investigate?

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 ?
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Part 2 (3:50 minutes)
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Part 2 Discussion Questions

In your jurisdiction, if the lawyer now
completes the sale does he risk
– Civil liability ?
– Criminal prosecution ?
– Loss of license to practice law ?
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“Solicitor Found Guilty”
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On 26th 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.
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“Solicitor Found Guilty”

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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
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At Sentencing the Judge Said:
“You were unable to say no to Mr.
Pattison, with whom you had a close
relationship”
 “You took a chance and you were
discovered”
 “Because of your connection with Pattison,
you closed your eyes …
 to the clearest of evidence.”
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On Appeal
Regina v. Philip Griffiths
 Royal Courts of Justice
– Court of Appeal Criminal Division
Decided 6 September 2006
 Citation: [2006] EWCA Crim 2155
 Griffith’s sentence was reduced to 6
months
 He also lost his license to practice law

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Part 3 (5:14 minutes)
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Four Component Model of Morality (FCM) (Rest, 1983)
Reasons (Predictors)
Moral
Blindness
Faulty
Reasoning
Lack of
Motivation & Identity
Motivation
Ineffectiveness
Moral Behavior
Unethical, Ethical, Unprofessional, Professional
Four Component Model of Morality (FCM) (Rest, 1983)
Moral Capacity (Predictors)
Operational Definition
Moral
Sensitivity
• capacity to interpret ambiguous clues
in real-life settings
Moral
Judgment
• capacity to analyze moral issues and
provide justifications for decisions
Moral Motivation
Motivation & Identity
Moral
Implementation
• capacity to internalize and give
priority to professional values
• capacity for empathic interaction and
problem solving
Effective Professional Conduct
Free Use of These Materials
You can download all three videos, the
script, and this power point at
 www.teachinglegalethics.org/content/AML
-Ethics
 Free to copy, distribute, re-post on the
web, and modify

– Rewrite script for your jurisdiction
– Re-record with new actors, in your language

As long as you provide attribution and do
not use for a commercial purpose
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Additional Resources

www.anti-moneylaundering.org (IBA
website)

UK law: Anti-Money Laundering Practice
Note, Law Society of England and Wales
(29 Oct 2009 132 pages)
– Can find and download using the IBA’s AntiMoney Laundering website
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