Lawyer's clarion call for restoration of AML defence

A Manx lawyer is calling on government to restore what he says was a vital defence in the Island's anti-money laundering legislation.

Tom Maher of law firm Dougherty Quinn says the repeal of the Adequate Consideration defence is causing enormous problems for the legal and corporate service sectors - and undermines access to justice.

The defence was abolished in 2009 in response to an International Monetary Fund report on the Island.

However, the IMF did not require the same action in Guernsey, Gibraltar and a number of other offshore jurisdictions.

According to Tom Maher, that's left an un-even playing field.

He argues a wide range of business - from hairdresser and car dealer to estate agent and private school - have nothing to fall back on if it's found they were paid with the proceeds of crime.

Until the repeal, businesses acting in good faith were entitled to obtain payment for goods and services - an 'adequate consideration' - without fear of legal sanction should the source of a client's subsequently become suspect. 

In response to these concerns, government says careful thought was given to the removal of the Adequate Consideration defence.  

Two years ago a Council of Ministers group invited the Isle of Man Law Society to submit verifiable evidence of problems that had arisen since the defence was removed in 2010.

However no evidence has been put forward by the society in the four year period.

Additionally, government does not accept that the defence's repeal exposes innocent parties to prosecution - as the person must know or suspect they are receiving the proceeds of criminal conduct. 

Mr Maher explained his concerns to Marian Kenny: