EU directive on money laundering fuels crusade to preserve client confidentiaityHUMAN RIGHTS: solicitors' 'professional standing could be seriously affected' if rights erodedThe European Parliament is set for a showdown with the European Council of Ministers over the EU money laundering directive, following a crucial vote last...The European Parliament is set for a showdown with the European Council of Ministers over the EU money laundering directive, following a crucial vote last week by the parliament's committee of citizens' rights and freedoms.German committee member Klaus-Heiner Lehne MEP said the Council of Ministers' position on the directive - agreed to in November 2000 - restricts lawyer-client confidentiality.

He proposed amendments to exclude 'giving legal advice' from the directive's reporting obligations for lawyers, guaranteeing greater lawyer/client confidentiality in cases where lawyers suspect clients of illegal activities.The committee voted unanimously last week to adopt Mr Lehne's amendments.

The European Parliament votes on the directive in April.

Timothy Kirkhope MEP, a solicitor and member of the rights committee, said: 'The relationship between lawyer and client is like that between a priest and parishioner or a doctor and patient.

It is an issue of human rights, as everyone has the right to talk in private with certain advisors.' He added that if the right to confidentiality was taken from solicitors, 'their professional standing would be seriously affected'.

Che Odlum, deputy head of EU and World Trade Organisation affairs at the Law Society's Brussels office, said that as a result of intensive lobbying by the Society, the original common position agreed by the council would approximate the position already in place for UK lawyers.

'UK lawyers are subject to restrictions similar to the ones proposed by the council, and so if the common position is adopted, it would not adversely affect UK lawyers.' However, she stressed that the rights committee's attitude 'is still worthwhile', and if it is adopted by the European Parliament, then 'lawyer/client confidentiality remains unaffected by the directive, and this would be significant for future European legislation in this area'.

Meanwhile, the Law Society's money laundering task force is taking an active part in consultations for the Proceeds of Crime Bill (see [2001] Gazette, 22 March, 1).

The Bill proposes extensions to reporting obligations and an objective test for suspicion that will impact significantly on solicitors.

Victoria MacCallum