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63 I L T A N E T . O R G Subsequently, criminals tend to target lawyers as victims of money laundering, especially if they work at a firm known for a weak policy. Law professionals are held to high standards in society — above all else, they are required to uphold the rule of law — so there is a critical need for AML guidance. In addition, every lawyer has the ethical and legal obligation to comply with regulations to prevent corrupt money from getting washed and put back into the economy. Complying with evolving AML regulations All law firms must establish an AML program that complies with the guidelines in their jurisdiction. Depending on where a law firm operates, practicing lawyers are required to follow domestic and international AML laws, regulations, and standards. According to "A Lawyer's Guide to Detecting and Preventing Money Laundering," all lawyers must know and continuously educate themselves about the relevant legal and ethical obligations that apply to their home jurisdiction and other jurisdictions in which they practice, and the relevant risks to their practice area and their clients in those jurisdictions. 10 Although AML regulations differ by location, they all have the same goal — to avoid facilitating criminal activity and thus prevent a threat to society. In the United States, the primary AML regulations include the Bank Secrecy Act and the Money Laundering Control Act, which made money laundering a federal crime. The U.S. Department of Treasury created the Financial Crimes Enforcement Network (FinCen) to implement, administer, and enforce compliance with the Bank Secrecy Act. 11 Despite these laws, the approach to AML legislation in the U.S. is quite lax compared to the rest of the world. The American Bar Association (ABA) has a conflicting view on AML. While the ABA claims to "support reasonable and necessary domestic and international measures designed to combat money laundering and terrorist financing" it also believes in honoring the integrity and independence of lawyers and therefore, "oppose[s] legislation and regulations that would impose burdensome and intrusive gatekeeper requirements on small businesses or their lawyers or that would undermine the lawyer-client privilege, the confidential lawyer-client relationship, or the right to effective counsel." 6 Unless a U.S.-based firm has a global presence or was previously stung by a money laundering criminal, it is unlikely going to voluntarily choose to implement and follow AML procedures. Around the globe, the U.S. is commonly viewed as a haven for money laundering and there's a general concern for the adverse effects of noncompliance. Outside of the U.S., mainly in the United Kingdom and the European Union, AML standards are much stricter. For instance, if a U.K.-based firm is caught participating in money laundering, it not only puts the lawyers in financial jeopardy, but they could also be accused of a federal crime. In 1990, to prevent financial market abuse, the E.U. adopted the first AML directive, which required entities to follow due diligence requirements when entering into a business relationship. 12 To this day, the European Commission enforces amendments to the directives and continues to impose robust legislation on law firms. The Solicitors Regulation Authority (SRA), the regulatory body for solicitors in England and Wales, exists to protect the public and ensure solicitors comply with regulations. Firms supervised by the SRA must follow a long list of AML obligations. In 2021, SRA had to investigate a 72% increase in suspected breaches of the money laundering regulations — demonstrating that law firms are still struggling to comply with the legislation. 13 A recurring problem with AML regulation is that the

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