Canadian lawyers win second court fight over proceeds-of-crime law

VANCOUVER – Canadian lawyers remain exempt from portions of the federal government’s Proceeds of Crimes and Terrorist Financing Act.

A unanimous ruling from a five-member panel of the B.C. Appeal Court has upheld a lower court ruling that struck down parts of the act that pertain to lawyers.

The panel dismissed the federal government’s appeal of the case, ruling that the law interferes with the independence of lawyers.

All 14 of Canada’s laws societies challenged the legislation that requires lawyers, financial institutions and others to keep records on money transactions in an attempt to stop terrorists and criminals from laundering cash.

The legislation was introduced by Parliament in 1989 and was amended in late 2008, making the regulations applicable to legal counsel and law firms in all provinces and territories.

In a written ruling released today, Justice Christopher Hinkson says he agreed with the lower court judge that the law was unconstitutional and infringed on lawyer-client privilege.