APRIL 7 2016
An internal report prepared for Canada’s anti-money laundering watchdog last year found that lawyers are the second most likely profession after entrepreneurs to face money laundering charges.
Details of the 2015 research paper released in draft form to Reuters under Access to Information laws, come as the leak of millions of documents from a Panamanian law firm have caused public outrage about the role lawyers play in helping clients hide their wealth.
The paper was produced for the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to consider in refining its anti-money laundering regime. The regulator said it uses this type of research to strengthen compliance and inform legislators of vulnerabilities.
Lawyers in Canada, unlike financial institutions and other professionals, are exempt from the obligation to report suspicious transactions, allowing them to use trust accounts to move around money for clients without notifying regulators. The exemption, won after a Supreme Court of Canada ruling, irks law enforcement and regulators, who say that while many lawyers abide by ethical standards, the lack of transparency makes it easy for others to hide illicit funds.