ABA Passes Resolution Opposing Suspicious-Transaction Reporting Rule for Lawyers

Nikhil Gore's commentary was included in a Wall Street Journal article on the ABA's resolution that passed following a push last year for legislation that would have required lawyers to flag suspicious transactions by their clients. The American Bar Association says that, if enacted, legislation requiring lawyers to flag clients' suspect transactions could violate lawyer-client confidentiality.

The association’s support for guidance is significant, even if it is only voluntary, Nikhil said. “Guidance can be voluntary," he noted, "but it informs the government’s view of what an industry practice might be. As a practical matter, if a lawyer is under scrutiny, they would be asked about the standards and would need to be able to articulate whether they are in compliance with them.”

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