International Risk Roundup — Anti-money Laundering Commentary, PR Risk in HK


One particular could make the situation for an inner “New Talking Intake” workflow/clearance process: “Martin Rogers of US regulation agency Davis Polk withdraws from Hong Kong countrywide safety legislation discussion board adhering to criticism” —

  • “The Asia chairperson of US-centered regulation agency Davis Polk & Wardwell has withdrawn from a Hong Kong forum on the national protection legislation subsequent criticism that it was a ‘propaganda occasion.’”
  • “Partner Martin Rogers stated in a LinkedIn put up on Saturday that his agreement to take part did not replicate assistance for any subject areas reviewed: ‘I was invited to speak, and approved the invitation, in my personal capacity alongside other unbiased authorities on specific matters which include procedural troubles that could come up associated to the countrywide protection law and legal guidelines in other jurisdictions.’”
  • “‘My agreement to participate did not mirror an endorsement or help of any subject areas mentioned or individuals or organisations involved,’ he extra. However, Rogers has brazenly expressed assist for the protection law at a preceding federal government forum.”
  • “In a LinkedIn write-up final 7 days, he tagged his legislation agency and claimed it was his honour to consider aspect in the celebration to commemorate the next anniversary of the stability law.”
  • “Samuel Bickett, a US law firm who was compelled to go away Hong Kong immediately after serving a jail sentence in excess of the 2019 protests, questioned how Davis Polk experienced approved the event.”
  • “‘Lawyers can and should really give commentary on the [security law] at specialist and academic conferences, but that’s not what this occasion is. It’s a propaganda party intended to validate the NSL as ‘just yet another regulation,’ and [Davis Polk] is becoming made use of as a software in company of that aim,’ he claimed on Twitter last Friday.”
  • “He later on tweeted: ‘I hope int’l legislation firms will consider a tough glimpse at their human rights oversight procedures throughout the entire world. What are your attorneys doing in your firm’s name that you really do not know about?’”

The Regulation Society’s Gazette delivers us commentary from Jonathan Goldsmith, Law Society Council member for EU & international and a previous secretary typical of the Council of Bars and Legislation Societies of Europe: “AML legal guidelines have unsuccessful: it is time to begin once more” —

  • “I want to emphasis in this article on the elaborate structure which they foisted on us to halt the servicing of corrupt dollars – the anti-funds laundering laws proliferating about the planet. These have unsuccessful, as well. It is not an exaggeration to say that those people legal guidelines lie in ruins, acquiring failed to cease the penetration of Western economies by corrupt Russian cash.”
  • “Yet there appears no recognition that the AML regime is fatally flawed. As with all mistakes, its supporters think that it was just not utilized strictly plenty of, and requirements to be reinforced.”
  • “To recognize the depth of wrongness of the existing AML thought, 1 want only study Catherine Belton’s e book, ‘Putin’s Persons,’ which was printed in 2020. This files in some element the several felony dealings which led to the rise of the Russian billionaires whose money flooded the West. She performed dozens of interviews in excess of several many years. Even so, there are substantial gaps since so considerably took put at the rear of an impenetrable veil of secrecy, and as a result of a number of levels of shell corporations in tax havens which absence transparency.”
  • “Yet the OECD, the EU, the United kingdom governing administration and other individuals guiding the development of the AML legal guidelines anticipate each individual solicitor to conduct his or her have investigation as aspect of purchaser because of diligence and ‘know-your-client’. The investigation is hence privatised and fragmented, getting to be performed more than and over once again by each and every solicitor or legislation agency as it is consulted.”
  • “Yet the depth of information needed – of Russian politics, of the Russian language, of the several diverse gamers, of the multiplying firms and fronts and transactions, of Russian regulations, and of historical situations – is past the means of a regulation company. It is preposterous to hope law firms to investigate what requires years, several interviews, and much academic expertise.”
  • “It is also a very inefficient way of going about matters, simply because it calls for the history to be re-investigated above and over all over again by different lawyers and regulation firms… It so comes about that there is now a ‘Putin’s People’ to enable with Russian investigations. But that stops in 2020, and has easy to understand gaps. Is there a ‘Putin’s People’ for Kazakhstan, China and whichever other countries fall inside of the exact same group?”
  • “A technique which privatises and fragments the want to investigation the most complicated occasions conceivable is each inefficient and unworkable. And we have just noticed the effects: large compliance departments unsuccessful to stops really serious penetration of our economies, with dire final results.”
  • “The legal career designed a mistake in its opposition to the legislation when they ended up initially released. We opposed it on the basis that it manufactured us breach law firm-shopper confidentiality by reporting suspicious transactions. We received nowhere with these statements, which ended up turned down by the courts.”
  • “We would have been better off by pointing out that the procedure being set up, with its requirement for solicitors to examine complexities and historical gatherings which are further than affordable access, is unworkable, and for them to be re-investigated by each and every participant in the chain above and over again is fully inefficient.”


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