ABA Resolution 100: Balancing Client Trust with Anti-Money Laundering Measures

On August 8, the American Bar Association’s House of Delegates passed Resolution 100 by a sizeable margin of 216 to 102, offering a new take on the ABA Model Rule of Professional Conduct 1.16. The revised resolution expands on a lawyer’s duty to assess the circumstances and facts of the representation at the outset, and throughout, to ensure avoidance of unlawful or fraudulent activities. This includes money laundering and similar activities.

The nuances of this motion lie in its careful preservation of the balance between the regulation of the profession and the sanctity of attorney-client relationships. With this new policy, lawyers are obligated to halt representation that might facilitate financial fraud, leaving intact, for the time being, the fragile equilibrium of state-based regulation of the legal profession and the preservation of client-lawyer trust and confidentiality.

This commentary was provided by attorneys at Ballard Spahr, who highlighted that the policy carefully treads the line between maintaining client relationships and ensuring ethical conduct in the legal profession. Follow the full story on Law360.