Lawyers and legal professionalsare frequently used inmoney laundering schemes, particularly throughtrust accountsthat offeranonymity and client privilege protections.
Option A (Correct):Repeated wire transfers from unknown sources followed by immediate outward transferssuggest that the lawyer’s trust accountis being used as a pass-through account for laundering funds.
Option B (Incorrect):If legal services were actually rendered,this is a normal transactionunless other risk factors exist.
Option C (Incorrect):Receiving funds from aregulated insurance companyisnot inherently suspicious, unless the transaction isinconsistent with the lawyer’s usual business activity.
Option D (Incorrect):Large transactions are normal inreal estate purchases, as long as proper documentation exists.
Red Flags in Legal Sector Money Laundering:
Use of lawyer trust accounts to move funds with no legitimate business purpose.
Frequent transactions from high-risk jurisdictions.
Transactions that are inconsistent with the lawyer’s area of practice.
Clients who refuse to disclose the source of funds.
Best Practices:
Apply AML measures to law firmshandling financial transactions, as required by FATF’sDesignated Non-Financial Businesses and Professions (DNFBPs)guidelines.
Require enhanced due diligence (EDD) for high-risk clientsandunusual transactions.
[Reference:, FATF Report on Legal Professionals & Money Laundering, Wolfsberg Group Legal Sector AML Guidance, 6th EU Anti-Money Laundering Directive (6AMLD) on DNFBPs, , , , ]
