1. ANTI-MONEY LAUNDERING, ETHICS AND PROFESSIONAL JUDGMENT: A TEACHING EXERCISE Nigel Duncan City Law School, London (UK) Clark Cunningham Georgia State University College of Law Atlanta, Georgia (USA)

2. Teaching Exercise Developed By Clark Cunningham Emma Oettinger, Anti-Money Laundering Policy Officer, Law Society of England & Wales Nigel Duncan Produced with the assistance of the international law firm of Freshfields Bruckhaus Deringer 2

3. The Videos Roles: – –Nigel Grayson, Solicitor, partner in a small firm in Durham, played by Nigel Duncan – –Emma Patrick, Client – Estate Agent in Durham, played by Emma Oettinger When: Friday, October 28 at 2:30pm Where:Solicitor’s office in Durham, England Part 1 (2:41 minutes) Part 2 (3:50 minutes) Part 3 (5:14 minutes) 3

4. Part 1 (2:41 minutes) 4

5. Part 1 Discussion Questions In your jurisdiction, should the lawyer do further investigation before completing the sale? – –If so, what should he investigate? In your jurisdiction, if the lawyer completes the sale without further investigation, does he risk – –Civil liability ? – –Criminal prosecution ? – –Loss of license to practice law ? 5

6. Part 2 (3:50 minutes) 6

7. Part 2 Discussion Questions In your jurisdiction, if the lawyer now completes the sale does he risk – –Civil liability ? – –Criminal prosecution ? – –Loss of license to practice law ? 7

8. “Solicitor Found Guilty” On 26th July 2004 Donna and Peter Davis from Yardley, Birmingham, were convicted of conspiring to supply Class A and B drugs and sentenced to 7 & 12 yrs A property owned by them had been sold following their conviction for less than a third of the market value. The property was purchased by Leslie John Pattison an estate agent Pattison paid £43,000 for the property (the outstanding mortgage on the property) which had been purchased two years earlier for £83,000. The conveyance of the property was handled by Phillip Jon Griffiths, a solicitor practicing in Shrewsbury. 8

9. “Solicitor Found Guilty” All four were charged with money laundering Griffiths in addition was charged with failing, as a member of the regulated sector, to make a disclosure, suspecting money laundering offences were taking place. Pattison was found guilty of acquiring criminal property and sentenced to 3 years Griffiths was cleared of money laundering He was convicted of failing to disclose a suspicious transaction and sentenced to 15 months imprisonment 9

10. At Sentencing the Judge Said: “ “You were unable to say no to Mr. Pattison, with whom you had a close relationship” “You took a chance and you were discovered” “Because of your connection with Pattison, you closed your eyes … to the clearest of evidence.” 10

11. On Appeal Regina v. Philip Griffiths Royal Courts of Justice – –Court of Appeal Criminal Division Decided 6 September 2006 Citation: [2006] EWCA Crim 2155 Griffith’s sentence was reduced to 6 months He also lost his license to practice law 11

12. Part 3 (5:14 minutes) 12

13. Four Component Model of Morality (FCM) (Rest, 1983) Motivation & Identity Moral Blindness Faulty Reasoning Lack of Motivation Ineffectiveness Moral Behavior Unethical, Ethical, Unprofessional, Professional Reasons (Predictors)

14. Four Component Model of Morality (FCM) (Rest, 1983) Motivation & Identity capacity to interpret ambiguous clues in real-life settings Moral Sensitivity capacity to analyze moral issues and provide justifications for decisions Moral Judgment capacity to internalize and give priority to professional values Moral Motivation capacity for empathic interaction and problem solving Moral Implementation Effective Professional Conduct Moral Capacity (Predictors)Operational Definition

15. Free Use of These Materials You can download all three videos, the script, and this power point at www.teachinglegalethics.org/content/AML -Ethics www.teachinglegalethics.org/content/AML -Ethics Free to copy, distribute, re-post on the web, and modify – –Rewrite script for your jurisdiction – –Re-record with new actors, in your language As long as you provide attribution and do not use for a commercial purpose 15

16. Additional Resources www.anti-moneylaundering.org (IBA website)www.anti-moneylaundering.org UK law: Anti-Money Laundering Practice Note, Law Society of England and Wales (29 Oct 2009 132 pages) – –Can find and download using the IBA’s Anti- Money Laundering website 16