The organisation suggested that the law could drive lawyers to become covert informers against their clients
The Law Council of Australia has warned that the proposed Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 [Provisions] could cause Australian lawyers to become covert informers against their clients, compromising their role in maintaining the rule of law.
The council presented its concerns about aspects of the law before the Legal and Constitutional Affairs Legislation Committee on Wednesday.
“We support efforts to prevent financial crime, deprive terrorist groups of income sources, and to ensure Australia meets the standards it has committed to as a member of the Financial Action Task Force (FATF). However, we do not agree with rhetoric that Australia needs to implement an AML/CTF regime which requires Australian lawyers to report on their clients, or face being ‘grey-listed’ by the FATF,” Law Council of Australia President Greg McIntyre SC said.
He highlighted how the current iteration of the bill “requires a lawyer to secretly report ‘suspicious matters’. The threshold for suspicious matter reporting is very low and broad—much wider than money laundering”.
McIntyre added that Australia could and should establish a tailored solution to reduce AML/CTF risks that aligns with FATF standards.
“The FATF assessment explicitly recognises there will be regional differences in domestic law and legal systems applying to lawyers”, he pointed out.
McIntyre explained that the Law Council was recommending amendments that it believed would fulfil the bill’s objectives without compromising individuals’ rights to consult their lawyers in confidentiality.
“In particular, we remain concerned about the potential for this bill to undermine the lawyer/client relationship and the position of lawyers as officers of the court, which is a core part of Australia’s justice system and the rule of law”, he said. “It is critical that a person seeking legal advice is able to have a frank and honest discussion with their lawyer, which can include matters that may implicate the person in a crime, without fear that the lawyer will, or is required to, inform a prosecuting authority. This in turn advances the rule of law as it assists clients in conducting their personal and business affairs within the law”.
McIntyre voiced the council’s belief that the Australian model “needs to strike a better balance between law enforcement and access to justice”.
“This would mandate action to be taken by the legal profession to avoid unwittingly facilitating money laundering, without undermining the important role that lawyers play in the administration of justice”, he said.
McIntyre added that the proposed amendments could lay a significant regulatory burden and expenses on lawyers, further impacting access to justice.
