Regulated sector professionals and reporting suspicion of money laundering: is it a disproportionate burden?
| DOI | https://doi.org/10.1108/JMLC-01-2022-0018 |
| Published date | 15 March 2022 |
| Date | 15 March 2022 |
| Pages | 462-473 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Muhammet Emir Çelik |
Regulated sector professionals
and reporting suspicion of money
laundering: is it a disproportionate
burden?
Muhammet Emir Çelik
Law Faculty of Istanbul University, Istanbul, Turkey
Abstract
Purpose –The purpose of the research paper is to determine the efficiency of all crimes approach, their
relationship with a risk-based approach and the consequences on regulated sector professionals. And,
therefore, what is meant by suspicion, how employeesfollow the requirements and how it affects the quality
and quantity of suspicious activityreports. It also considers the economic and legal challenges the regulated
sector faces while dealing with customers or clients. All in all, this paper investigates what does the anti-
money laundering(AML) regime means for legal practice and how lawyers’responsibilityis affected.
Design/methodology/approach –As the research is being conducted through the analytical
methodology, the specific topic of “regulated sector professionals and reporting suspicion of money
laundering”is analyzed.It evaluates the fact that the risk-based approach followed in FinancialAction Task
Force (FATF) recommendationsand its adaptation in the UK with allcrimes approach caused discrepancy in
the judicialsystem and influenced regulated sector professionalsnegatively.
Findings –The paper points out thatin spite of protectiveamendments in terms of jurisdictional immunity,
UK legislation has caused problems for regulated sector professionals, such as the potential of breaching a
client confidentialityagreement and avoiding tipping-off,thus remaining under pressure by clients and facing
the risk of losing theirclients or obligation to record suspicions in case of court investigation.
Originality/value –The question of money laundering and the FATF recommendations has had a
considerable scholarship.However, the proposed study intends to precisely look at the efficiency of all crime
approaches, their relationship with a risk-based approach and the consequences on regulated sector
professionals. The proposed research will further determine the regulated sector’s economic and legal
challenges while dealingwith customers or clients. Unlike the existing scholarship, theproposed thesis will
focus on what the AML regime meansfor legal practice and how lawyers’responsibility is affected.
Keywords FATF, Money laundering, Regulation, Risk-based approach, All crimes,
Regulated sector
Paper type Research paper
Introduction
For quite a while, it has been well known that financial establishments have been used to
conceal traces by criminals (He, 2006). Therefore, it is agreed universally that the most
efficient way to tackle ML is using financial establishments effectively (The European
Parliament and of the Council, 2001). Money laundering (ML) is used to describe not just
cleaning of the capital fund but also disguising the illicit source of assets which was
produced from criminaloffenses to provide profit to a particular group or person[1]. In 1990,
40 recommendations were published by Financial Action Task Force (FATF) who has
admitted as an internationalauthority in relation to fighting ML to present extensive regime
for counter-terrorism financing (CTF) and international anti-money laundering (AML)
JMLC
26,3
462
Journalof Money Laundering
Control
Vol.26 No. 3, 2023
pp. 462-473
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2022-0018
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