Lexbridge is leading an exciting project to develop a model anti-money laundering (AML) and criminal asset confiscation framework (the Model Legal Framework). The Model Legal Framework is intended to reflect best practice legal standards and to be tailored for adoption and implementation by Pacific Island countries. The project aims to assist Pacific Island countries in their efforts to combat the threat of money laundering linked to corruption and organised crime.
The Model Legal Framework will include a suite of AML offences, proceeds of crime and asset confiscation provisions, including non-conviction-based proceeds of crime (NCB POC) asset confiscation and forfeiture powers and asset management provisions, international cooperation provisions, and complementary provisions for the protection of due process rights and innocent property interests. It will be accompanied by a suite of implementation materials, aimed at facilitating legislative passage and effective implementation. It is also intended to be accompanied by training and guidance materials to be delivered to users in adopting jurisdictions. The design of the Model Legal Framework builds on an extensive program of consultation with stakeholders across the Pacific Region, conducted in 2023 with support from the American Bar Association Rule of Law Initiative. Overall, there was strong support for the proposed Model Legal Framework across the bilateral and multilateral stakeholders consulted. Read the report on that phase of the project here.
The team is already working with one jurisdiction, the Cook Islands, on the delivery and implementation of a tailored package of legislative reforms, which will be based on the Model Legal Framework, and designed to accord with the jurisdiction’s particular policy settings and circumstances. The Cook Islands is just the beginning though; the underlying intention of the Project is for the Lexbridge team to work with successive adopting countries to deliver a reform package tailored to each jurisdiction’s own particular circumstances.
The Model Framework will enable adopting countries to not only meet their existing treaty obligations but also to implement best practice standards such as those recommended by the Financial Action Task Force (FATF). The FATF Recommendations set out a comprehensive and consistent framework of measures for countries to implement in order to combat money laundering and terrorist financing.
Amendments to the FATF Recommendations announced in November 2023 now require countries to have policies and operational frameworks that prioritise asset recovery and establish non-conviction-based confiscation regimes in their legal systems. It is now up to each country to implement these revised requirements effectively in their national frameworks. Lexbridge’s Project is therefore very timely. If adopted and implemented by a majority of Pacific Island countries, the Model Legal Framework would potentially be the most significant advancement in the Pacific Region to combat serious and organised crime, particularly financial crime, for the past 20 years. A key feature of the Model Legal Framework will be the introduction of a NCB POC asset confiscation and forfeiture regime. NCB POC confiscation laws have been proven to be a highly effective method to confiscate the POC from those who profit from, but distance themselves from the criminal act. This is particularly important in transnational crime cases where frequently convictions cannot be secured in the country where the predicate offence occurred.
The Model Legal Framework will bring a host of other significant benefits for adopting countries and the region as a whole. A regionally-focused model law applies a focus on specific considerations achieved through extensive local stakeholder consultation. Adoption of all or part of a model law provides a more cost-effective approach in both staffing time and financial costs, which can be a significant barrier for smaller jurisdictions. Moreover, a consistent regional framework provides a strong basis for regional cooperation and improved interoperability, particularly through the use of regional networks, the provision of training and development of resources and delivery of mentoring assistance.
To read more about the Project read our Project Overview here.
If you are interested in liaising with Lexbridge about the project, please contact us at: modellaw@lexbridgelawyers.com
