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 Clark Cunningham Georgia State University College of Law, Atlanta

2. Money-Laundering learning resources prepared by: Clark D Cunningham, W Lee Burge Professor of Law and Ethics, Georgia State University, Atlanta Nigel Duncan, Professor of Legal Education, City University, London Emma Oettinger, Anti-Money-Laundering Policy Officer, Law Society of England & Wales Produced with the assistance of Freshfields Bruckhaus Deringer Available for free download on www.teachinglegalethics.org

3. The Videos • Roles: • Nigel Grayson, Solicitor, partner in a small firm in Durham, played by Nigel Duncan • Emma Patrick, Estate Agent in Durham, played by Emma Oettinger • When: Friday, July 13 at 2.30 pm • 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) • http://www.teachinglegalethics.org/aml-ethics

5. Part 2 (3:50 minutes) • http://www.teachinglegalethics.org/aml-ethics

6. Working in groups • How might you use these materials for working with your students and with what particular objectives?

7. A learning activity to address: • The substantive law • The adjectival law • The role of the professional lawyer • Client care and client autonomy • Professional privilege • Conflicting professional duties • The nature of morality • Understanding oneself

8. The example of Anti-Money Laundering Proceeds of Crime Act 2002. • Entering into a money laundering arrangement - s.328 • Acquiring criminal property - s. 329 • Failing to make a required disclosure - s.330 • Tipping off – s. 333A (defence s. 333D (2)) R v Griffiths [2006] EWCA Crim 2155; • Estate agent – ss. 328 and 329 – 3 yrs (reduced to 27 m) • Solicitor – s. 330 – 15 months (reduced to 6m)

9. Four Component Model of Morality (Rest, 1983) Reasons (or predictors) Moral Blindness Faulty Reasoning Lack of Motivation Ineffectiveness (Character or Competence) Professional Misconduct

10. Four Component Model of Morality (Rest, 1983) Moral capacity (predictors) Operational definition Capacity to interpret ambiguous clues in real-life settings Moral sensitivity Capacity to analyse moral issues and provide justifications for decisions Moral judgment Capacity to internalise and give priority to professional values Moral motivation Capacity for empathic interaction and problem solving Moral implementation Effective Professional Conduct

11. References • Cunningham, C, & Alexander, C, ‘Developing Professional Judgment’, in Robertson et al (eds) The Ethics Project in Legal Education, (2010, London: Routledge) • Duncan, N, ‘Addressing Emotions in Preparing Ethical Lawyers’ in Maharg & Maughan (eds), Teaching and Reaching the Whole Student – the Impact of Emotions on Learning (and Teaching) the Law. (2011, Dartmouth: Ashgate). • Hartwell, S, 1994. ‘Promoting moral development through experiential teaching’. 1 Clinical Law Review 505-540. • Kohlberg, L, Essays on Moral Development Vol. 1: The Philosophy of Moral Development. (1981 San Francisco: Harper and Row). • Rest, J, ‘Background: Theory and Research’, in Rest and Narvaez (eds), Moral Development in the Professions: Psychology and Applied Ethics, (1994,Hillsdale:Ehrlbaum) • Sullivan, W, et al, Educating Lawyers: Preparation for the Profession of Law, Carnegie Foundation for the Advancement of Teaching, (2007, San Francisco: Jossey-Bass) • Contact: n.j.duncan@city.ac.uk