ANTI-MONEY LAUNDERING, ETHICS AND PROFESSIONAL JUDGMENT: A TEACHING EXERCISE

1. 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)

2. 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

3. 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)

4. Part 1 (2:41 minutes)

5. 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 ?

6. Part 2 (3:50 minutes)

7. 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 ?

8. “Solicitor Found Guilty” • 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.

9. “Solicitor Found Guilty” • 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

10. 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.”

11. 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

12. Part 3 (5:14 minutes)

13. Four Component Model of Morality (FCM) (Rest, 1983) Motivation & Identity Moral Behavior Unethical, Ethical, Unprofessional, Professional

14. Four Component Model of Morality (FCM) (Rest, 1983) Motivation & Identity Effective Professional Conduct

15. 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

16. 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 Anti-Money Laundering website