Money laundering fears put US lawyers on alert

The American Bar Association has created a task force to investigate international anti-money laundering efforts, amid concerns that 'unclear' European Union (EU) provisions may be imposed on the US.President Robert Hirshon said with world leaders looking to professionals as gatekeepers to report suspicious financial activities, 'the US may also attempt to require US lawyers to report suspicious client activity'.He said this 'could seriously threaten the confidential relationship between lawyers and their clients'.The financial action task force is set to issue a report in May on what countries should do to combat money laundering through professionals, and Mr Hirshon voiced concern that the EU approach could be used.'The directive adopted by the EU carves out exceptions for lawyers engaged in "legal advice" in contrast to those "participating in corporate or financial transactions".

But those distinctions may not be clear in many transactions,' he said.