B.C. law society proposes rules to crack down on money laundering

The Law Society Rules (including Part 3, Division 11 – Client Identification and Verification[1]) and the Code of Professional Conduct for British Columbia (including rule 3.2-7 and commentary[2]) establish lawyers’ obligations when dealing with private loans. Failure to be attuned to suspicious transactions can result in a professional misconduct hearing. In addition to the know-your-client rule, the LSBC has posted a checklist of signs that may indicate a money-laundering transaction is behind the private loan. They are:

  • there is no clear or plausible reason why the borrower is not borrowing from a commercial lender.
  • the amount or fact of the loan seems inconsistent with the client’s circumstances.
  • third parties are involved without apparent good reason.
  • the funds advanced are in cash and the parties are unwilling or unable to provide basic details or documentation concerning the loan, including its source.
  • the funds come from, go to or are to be repaid offshore or to a jurisdiction that is known to be secretive or restrictive.
  • there is no security for a large loan or the security is a subsequent mortgage or charge on a fully or near-fully encumbered property.
  • the actual or agreed-to repayment period is unusually short.
  • the interest rate exceeds the criminal rate or is above market.
  • the lawyer is retained after the funds have been advanced.
  • the lawyer is not experienced in the relevant area of law or the client has been refused counsel or changed counsel recently or several times without apparent good reason.
  • any party to the transaction has an alleged or known history of drug trafficking, money laundering, civil forfeiture, loan-sharking, fraud, high-stakes gambling or similar activity.
  • the client is unusually familiar with or resistant to client identification and verification requirements.

B.C. launched a crackdown on money laundering beginning in 2017 when it released a report by the previous Liberals that pointed to casino money laundering. Attorney General David Eby appointed Peter German to carry out a report on casinos, made public in 2018. Two further reports followed in September 2018. German was commissioned to do a casino followup, with the report tendered March 31. Meanwhile, Finance Minister Carole James commissioned a review of real estate, the luxury car industry and horse racing. The Expert Panel On Money Laundering tendered its report to James on March 31 also. Both reports are undergoing reviews. 

The Expert Panel on Money Laundering consists of panel chairwoman Maureen Maloney (the first woman dean of law in B.C.), real estate expert Tsur Somerville, associate professor at the Sauder School of Business at UBC, and Brigitte Unger, a professor at the University of Utrecht in the Netherlands and an internationally renowned expert on money laundering who consults with the United Nations.

However, B.C. has made strides in the real estate sector. It has introduced the Land Owner Transparency Act, which, when passed, will establish a public, searchable registry of beneficial owners of property in B.C., meaning true ownership will no longer be hidden. The act will require corporations, trusts and partnerships that currently own or buy land to disclose their beneficial owners in the registry. Corporations, trusts and partnerships that fail to disclose could face fines of up to $100,000 or 15 per cent of the assessed property value, whichever is greater. The B.C. government also introduced amendments to the Business Corporations Act that will require private companies to hold accurate and up-to-date information about the true owners of their shares and eliminate unregistered shares owned by the certificate holder.

LSBC president Nancy Merrill was quoted in a government press release[3] as saying: “This groundbreaking move by the B.C. government will increase the transparency of land ownership in B.C. and make it more difficult to use such arrangements for tax evasion, fraud and money laundering.”

References

  1. ^ Client Identification and Verification (www.lawsociety.bc.ca)
  2. ^ rule 3.2-7 and commentary (www.lawsociety.bc.ca)
  3. ^ in a government press release (news.gov.bc.ca)

Source URL: Read More
The public content above was dynamically discovered – by graded relevancy to this site’s keyword domain name. Such discovery was by systematic attempts to filter for “Creative Commons“ re-use licensing and/or by Press Release distributions. “Source URL” states the content’s owner and/or publisher. When possible, this site references the content above to generate its value-add, the dynamic sentimental analysis below, which allows us to research global sentiments across a multitude of topics related to this site’s specific keyword domain name. Additionally, when possible, this site references the content above to provide on-demand (multilingual) translations and/or to power its “Read Article to Me” feature, which reads the content aloud to visitors. Where applicable, this site also auto-generates a “References” section, which appends the content above by listing all mentioned links. Views expressed in the content above are solely those of the author(s). We do not endorse, offer to sell, promote, recommend, or, otherwise, make any statement about the content above. We reference the content above for your “reading” entertainment purposes only. Review “DMCA & Terms”, at the bottom of this site, for terms of your access and use as well as for applicable DMCA take-down request.

Acquire this Domain
You can acquire this site’s domain name! We have nurtured its online marketing value by systematically curating this site by the domain’s relevant keywords. Explore our content network – you can advertise on each or rent vs. buy the domain. [email protected] | Skype: TLDtraders | +1 (475) BUY-NAME (289 – 6263). Thousands search by this site’s exact keyword domain name! Most are sent here because search engines often love the keyword. This domain can be your 24/7 lead generator! If you own it, you could capture a large amount of online traffic for your niche. Stop wasting money on ads. Instead, buy this domain to gain a long-term marketing asset. If you can’t afford to buy then you can rent the domain.

About Us
We are Internet Investors, Developers, and Franchisers – operating a content network of several thousand sites while federating 100+ eCommerce and SaaS startups. With our proprietary “inverted incubation” model, we leverage a portfolio of $100M in valued domains to impact online trends, traffic, and transactions. We use robotic process automation, machine learning, and other proprietary approaches to power our content network. Contact us to learn how we can help you with your online marketing and/or site maintenance.

Share