Know Your Client

Under Anti Money Laundering (AML) regulations, lawyers have the to do as follows:

1. assess the identity of the client and the identity of the actual owner or beneficiary of the concerned legal interest (hereinafter the “principal”), if different from the client;
2. keep updated personal information on file;
3. report the client’s operations to the AML authorities when the lawyer deems that said operations are part of a money laundry scheme or terrorism financing.

The reporting obligation above applies in several circumstances. For example, the lawyer shall inform the authorities of any reasonable suspicion, that one of the following conditions applies:

1. the case refers to activities representing, facilitating or funding money laundry or terrorism; or
2. the funds come from illegal activities; or
3. a cash amount higher than EUR 3,000 has been transferred between different subjects.

It is illegal for lawyers to inform their client that they are going to report or have reported them to the AML authorities.

Lawyers shall pay particular attention to cases involving clients who have political exposure.

Are you a subject of political exposure?

You are a subject of political exposure if, regardless of your citizenship or residence, you, one of your family members or a person close to you or to a family member of yours, held or still hold a political, public or judicial office. Find below some examples:

1. Examples of qualifying offices:

1. head of State, President and Premier, minister, vice-minister, secretary and deputy secretary;
2. members of Parliament;
3. members of the Supreme court, Constitutional Court or other top level judicial entities;
4. members of the financial auditors and of boards of the Central Banks;
5. ambassadors and military force commanders;
6. state-controlled companies: members of the board of directors, executive council and auditors.

2. Example of qualifying family or close subjects:

1. spouse;
2. children and their spouses;
3. subjects who lived with you or the subjects above within the past five years;
4. parents.

3. Subjects who have joint signing powers or other business relationship with the subjects above.

1. the authorized representative of entities created to benefit one of the subjects above.