Client Confidentiality Versus the Fight Against Money Laundering in France

"A well organised society ensures a patient gets a doctor, a litigant benefits from the assistance of a lawyer, a catholic receives confession from a priest. However, neither the doctor nor the lawyer, nor the priest would be able to accomplish their duty if the confidences made to them were not governed by professional privilege. Therefore, it is of great importance that these various confessors commit themselves to preserve secrecy through the duty imposed on them, without any condition or any reservation, otherwise no-one will dare confide in them if they fear the disclosure of a confidence".

Note of M. GarÁon under Article 378 of the former French criminal code.

The duty of client confidentiality is one of the pillars of a liberal society and a state governed by the rule of law. However, in this global age, the movement towards transparency in the international business community is imposing new duties upon lawyers to report to relevant authorities suspicious transactions made by their clients.

French lawyers' duties of client confidentiality

The duty of client confidentiality of French lawyers is enshrined in law. Article 2 of the "RËglement IntÈrieur du Barreau de Paris" (Paris Bar Code of Conduct) stipulates that it is:

"general, absolute and not limited in time. The lawyer being the necessary confidant of a client, this secrecy is established in the public interest.

A lawyer cannot be released from this duty by his client, any authorities or any third party in general".

A breach of this professional duty constitutes a breach of the Code of Conduct rules. In addition, it also constitutes a criminal offence defined under Article 226-13 of the French Criminal Code:

"The disclosure of secret information by a person entrusted with such a secret, either because of his position or profession, or because of a temporary function or mission, is punished by one year's imprisonment and a fine of d15,000."

The criminal offence is committed as soon as the information is disclosed (even if there is no malicious intent) except in two limited circumstances provided for under Article 226-14 of the French Criminal Code: when a person informs a judicial, medical or administrative authority of cruelty or deprivation of which he has knowledge and which has been inflicted on a minor under fifteen years of age, or a person unable to protect himself because of his age, mental or physical state.

Requirements to detect money laundering

Lawyers in France...