Legal professionals and money laundering in Spain

Abstract

Purpose

The purpose of this paper is to analyse those obligations to share information and deliver assistance which flow from the legislation intended to prevent the money laundering as contained in the Law 19/2003 of the 4 July, which transposes into Spanish law the provisions of Directive 2001/97/EC, which provisions set out the obligations of notaries, registrars, lawyers and court attorneys and their compatibility with their duties of professional privilege.

Design/methodology/approach

The new law has provoked a debate centred in the compatibility of the obligations of disclosure with legal professional privilege and the rights of the defence. This issue is discussed in the paper.

Findings

With regard to lawyers there arises a conflict between the duty to maintain client confidentiality and the obligations of disclosure in the prevention of money laundering which must be resolved in favour of the former, it being established in Spain by a law of superior status. This means that if a lawyer transfers the information concerning his suspicion he should therefore be punished as committing the crime of disclosure of confidential material.

Research limitations/implications

Only Spanish literature is used.

Practical implications

With respect to the lawyers, the carrying out of the obligations of disclosure imposed by the new Spanish Law 19/2003 breaches the duty of client confidentiality. For notaries, registers and court attorneys the problem does not exist.

Originality/value

An overall view is offered of the difficult situation in which some legal professionals find themselves in light of the prevention of money laundering in Spain.

Citation

Faraldo Cabana, P. (2007), "Legal professionals and money laundering in Spain", Journal of Money Laundering Control, Vol. 10 No. 3, pp. 318-336. https://doi.org/10.1108/13685200710763489