Avocat, rechtsanwalt or agent of the state? Anti-money laundering compliance strategies of French and German lawyers

Abstract

Purpose

The purpose of this paper is to analyse how lawyers in two of the largest European economies manage the contradictory requirements set by anti-money laundering and counter-terrorism financing (AML/CTF) legislation on the one hand and professional codes of ethics on the other hand.

Design/methodology/approach

The study is based on qualitative interviews with French and German lawyers. It asks “How do European lawyers handle the conflicting demands ensuing from their roles as frontlines workers?” The paper uses lawyers’ day-to-day practices and variations in member states’ transpositions of the European Union directives as a starting point to study AML/CTF in the miniscule.

Findings

The article shows that contextual institutional restraints and cultural factors have significant impact on the possibility to enlist for-profit actors in the fight against terrorism an organised crime.

Research limitations/implications

This research highlights several factors inherent in AML/CTF regulation that warrant further research. Not only should further work be carried to broaden the understanding of lawyers but also other actors included in this policy area.

Practical implications

The study explains why French and German lawyers do not comply as expected by the legislator. If increased compliance is required, then the paper provides input into what measures can be taken, by policy, enforcement and supervision.

Originality/value

The study focusses on a hard-to-reach group of actors in AML/CTF regulation that has never before been studied in detail. As recent scandals have shown, lawyers are key actors in global finance but have rarely been scrutinised in their AML compliance norms and routines.

Citation

Svenonius, O. and Mörth, U. (2020), "Avocat, rechtsanwalt or agent of the state? Anti-money laundering compliance strategies of French and German lawyers", Journal of Money Laundering Control, Vol. 23 No. 4, pp. 849-862. https://doi.org/10.1108/JMLC-09-2019-0069