A recent spate of economic sanctions imposed by the Office of Foreign Assets Control (OFAC) in the US fall into this category.
In response to these developments, well-heeled individuals should prepare a file or dossier establishing the legitimate origin of their monies in advance of any CDD request when new business relationships are sought to be established.
Even individuals and businesses with the most scrupulous of records will find the collation of material to be onerous and missing information may need to be obtained.
Professional assistance may need to be sought, and the information must be focused on assuaging any CDD concerns.
The law has reached a sorry state when it requires financially successful individuals and businesses, and those who have inherited wealth, to prove the legitimacy of the source of their funds.
The burden of proof has been reversed.
The initiative to prevent the proceeds of crime from entering the financial system is international, and an investor ignores it at his peril.
Today, Balzac’s quip reflects the legal steer, and it rests on the shoulders of the individual to prove to the contrary.
Jonathan Fisher is lead counsel at Bright Line Law
