An in-depth introduction to: General AML concepts, including POCA and RFB, CDD/EDD/SDD, the Risk Based Approach, the NRA, and key offences 

Legal professionals are regularly at risk of being exposed to money laundering (ML), terrorist financing (TF), and proliferation financing (PF) activities. In this seminar, we explore why Know Your Customer (KYC) and Anti-Money Laundering (AML), counter-terrorist financing (CFT) and counter-proliferation financing (CPF) measures are relevant and important. Further information about the content is detailed below:

Observance of AML/CFT/CPF requirements is essential not just for legal professionals to remain compliant with the legislative framework, but also to safeguard them against the risk of criminals exploiting their AML/CFT/CPF vulnerabilities, which could expose legal professionals and their firms to criminal liability, as well as regulatory enforcement by way of financial penalties, restrictions on business activities or disciplinary processes to name a few.

KYC and KYB (Know Your Business) processes are therefore also important for protecting business interests, such as avoiding scams and fines, and ensuring that companies operate in an ethically sustainable manner.

Even though law firms are not financial institutions, legal professionals are still at risk of having their services misused for ML/TF/PF purposes. Criminals may seek legal assistance during illicit financial, corporate, or real estate transactions simply as a means to use a law firm’s professional status to enhance the (appearance of) legitimacy of a transaction. Further, criminals may actively transfer or deal with criminal property through a law firm. For example, legal services may be obtained with the intention of transferring the proceeds of crime through a law firm’s client accounts.

Legal professionals (and the law firms they work for) may therefore unknowingly be involved in ML/TF/PF activities when their services are used for depositing, transferring, or withdrawing funds, but also when they enter or facilitate arrangements that allow others to launder the proceeds of crime (i.e. even where no funds pass through a client account).

Legal professionals have a legal responsibility not to facilitate or support unlawful activities. Criminals continue to use complex schemes and transactions to launder money, finance terrorism and finance the proliferation of weapons of mass destruction and other threats to public safety. For these reasons, legal professionals are responsible for not only understanding their AML/KYC obligations but also for implementing the correct procedures to prevent ML/TF/PF.

Complying with these obligations means training staff to identify complex transactions that may pose a high risk, and consider the risk and context of Gibraltar as a jurisdiction as outlined in the National Risk Assessment (NRA). 

Law firms should take appropriate action if they suspect a client, or a potential client, is laundering money, financing terrorism or proliferation or intends to do so. It is equally important for legal professionals to correctly identify clients when they are establishing business relationships for high-risk transactions.

As ML/TF/PF techniques have become more sophisticated, it has therefore become increasingly important to also understand the background information of clients and their associated business partners (as well as ultimate beneficial owners). This is in addition to obligations with respect to financial and other sanctions which apply in Gibraltar under, inter alia, the Sanctions Act 2019 and Terrorist Asset-Freezing Regulations 2011 (and similar legislation). The seminar will only briefly cover this topic as this would form the basis of a separate session.

Corporate clients range from small start-ups to multinational financial institutions, which means keeping up with KYC/AML regulations can be demanding, especially if processes are not automated or managed efficiently. All companies regardless of their industry could represent a ML/TF/PF threat and legal professionals should adopt a risk-based approach in assessment of the risks posed by a particular type of client with regard to certain risk factors such as interface risk, geographic risk, customer risk and transaction risk. Regard must also be had to the NRA. 

Lawyers and law firms are encouraged to stay informed about their obligations and responsibilities under AML laws, as this safeguards them from possible investigations and the risk of being exploited by criminals for ML/TF/PF purposes. In order to be compliant with the legal and regulatory framework, they should adopt a risk-based approach, conduct regular due diligence (including transaction monitoring), and report suspicious activity to the Gibraltar Financial Intelligence Unit (GFIU).

All the above might appear to be complex and burdensome. And some legal professionals might even think that this is only and exclusively the responsibility and duty of the compliance officer and MLRO of the law firm they work for. In fact, it is the responsibility and the duty of the legal professional which is relevant. 

The LSRA (https://lsra.gi/) and GACO are delighted to have engaged with Michael Adamberry to deliver what should be a useful and interactive face-to-face seminar. 

Participants will receive the following:

• a general overview on ML/FT/PF
• an introduction to POCA and related AML/CFT/CPF legislation and guidance
• the role of relevant financial businesses (RFBs)
• customer due diligence (CDD) requirements including enhanced and simplified CDD.
• the Risk Based Approach

This event is targeted at legal professionals engaged in relevant financial business (RFB) and MLROs, compliance staff and any other relevant persons in legal practice carrying out RFB. It is the first of a series of training events organised by GACO and this particular session is introductory and aimed in particular at junior staff such as Trainees and < 3yr PQE Associates. Effectively anyone employed at a legal practice and wanting to get acquainted with key AML/CFT/CPF concepts or wanting to refresh their current knowledge about those topics is welcome. 

In due course, two further sessions will be arranged aimed at more senior practitioners, as follows:

• Session 2: taking a deeper dive into suspicious activity reports, the concept of reliance, source of funds and source of wealth, politically exposed persons, and targeted financial and other sanctions; 
• Session 3: focused session on AML Red Flags and case studies in legal sector in a more open / collaborative format with case studies and small group work

Speaker Profiles

Michael Adamberry

Michael Adamberry is a Crown Counsel at the Ministry of Justice, Trade and Industry, at His Majesty’s Government of Gibraltar (HMGoG). 

Michael is a dually qualified solicitor and barrister and has prior experience as a legal professional in private practice specialising in Regulatory Compliance advisory services, including AML/CFT/CPF and Data Protection compliance. As a former regulator at the Gibraltar Financial Services Commission, Michael was also called upon for his expertise in Banking & Regulatory Compliance Services, with focus on AML/CFT/CPF & Financial Crime.

Michael has advised a wide range of clients ranging from sole traders and SMEs, to large multi-national corporates, public authorities, HMGoG, financial institutions, real estate agents, and insurance companies. 

He is presently seconded to the Royal Gibraltar Police’s Economic Crime Unit, where he is at the forefront of money laundering and other financial crime investigations. 

Michael also assisted in edits to the first edition of the anti-money laundering guidance notes for Gibraltar’s legal profession, and has advised HMGoG on the implementation of legislative amendments concerning the 5th and 6th Anti-Money Laundering Directives. 

One of his key contributions in this space was assisting HMGoG in the drafting of the Proceeds of Crime (Miscellaneous Amendments Act) 2021 and related legislation as part of remediation work following the Mutual Evaluation Report for Gibraltar issued by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). He is also recently trained as an assessor by the Financial Action Task Force (FATF) and will be looking to participate in Mutual Evaluations Reports on other jurisdictions in due course. 

As a trained lawyer and having been active in the local compliance industry, Michael is well qualified to provide legal professionals and other RFBs with key insight into these topics, as they were and remain part and parcel of his day-to-day responsibilities and duties. 

Francis Muscat

The CEO of the LSRA, Francis Muscat will open the seminar and address the attendees of the event. 

Further information

Date:
2nd April 2025

Venue: 
Casemates Conference Room, The Eliott Hotel, 2 Governor's Parade, Gibraltar GX11 1AA

Event timings: 
9.00hrs - 9.30hrs - Welcome coffees and address by the LSRA;
9.30hrs to 10.45hrs - Seminar;
10.45hrs to 11.00hrs - Q&A

Fees: 
£25 per attendee