The Rules of Professional Conduct for Legal Practitioners 2023 (the New Rules) is the most recent iteration of the codified rules of ethics that members of the legal profession in Nigeria are required to comply with. The importance of these rules can be seen in the fact that it forms the bulk of the course, “Professional Ethics” studied at the Nigerian Law School.

The General Council of the Bar in exercise of the powers conferred on it by Section 12(4) of the Legal Practitioners Act[i] and all other powers enabling it in that regard made the New Rules on the 6^th of June, 2023.  The General Council of the Bar introduced the New Rules for the purpose of maintaining a high standard of conduct, etiquette, and discipline amongst legal practitioners in Nigeria.

The New Rules comprise 78 rules arranged into three Chapters. Chapter One deals with rules of conduct for Legal Practitioners, Chapter Two deals with Guidelines and Rules on Anti-Money Laundering and Combating the Financing of Terrorism for Legal Practitioners, and Chapter Three deals with Miscellaneous Provisions.

The provisions of Rule 1 to Rule 54 under Chapter One of the New Rules are substantially the same as those in the Rules of Professional Conduct for Legal Practitioners, 2007 (the Old Rules). However, it is important to note the provisions of rule 48(2) of the New Rules which provide that any fee for service rendered by a legal practitioner shall not be in violation of the Remuneration Order. This is a departure from the Old Rules which merely state that a lawyer shall not enter into an agreement for, charge, or collect an illegal or clearly excessive fee. The Remuneration Order provides detailed guidelines for the remuneration of legal practitioners in Nigeria.

It is interesting that the New Rules introduces a new chapter on the Guidelines and Rules on Anti-Money Laundering and Combating the Financing of Terrorism for Legal Practitioners. These guidelines seek to promote adherence to the rule of law, promote the duty of confidentiality towards clients, internally self-regulate members of the legal profession, and encourage the adoption of the risk-based approach for legal practitioners to be able to identify money laundering, terrorism financing, and proliferation financing situations before they occur.[ii]

EXAMINATION OF THE GUIDELINES AND RULES ON ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM FOR LEGAL PRACTITIONERS

The Guidelines and Rules on Anti-Money Laundering and Combating the Financing of Terrorism for Legal Practitioners under Chapter Two of the New Rules apply to all legal practitioners whose names appear on the roll and particularly as described in Section 2 of the Legal Practitioners Act.

The reporting and compliance obligations of a legal practitioner under these guidelines arise when conducting sales or purchase of real estate for clients or providing advisory services to clients in a real estate transaction.[iii] These obligations also arise when acting as a formation agent of legal persons, acting as or arranging for another person to act as a director or secretary of a company, partner of a partnership, nominee shareholders for another person, trustees of an express trust or when providing a registered office for a company, a partnership or any other legal arrangement.[iv]

The New Rules mandate a legal practitioner to conduct an internal risk assessment to understand, identify, assess, and mitigate the risk of money laundering, terrorism financing, and proliferation financing when providing any of the professional services.[v] Legal practitioners are to maintain an up-to-date record of the necessary information about their clients that will aid the identification of their clients and to keep or process such information in accordance with relevant data protection and client professional privilege laws and Rules applicable in Nigeria.[vi] The Rules prescribe a minimum period of five years following the completion of the transaction or termination of the business relationship.[vii]

Where a legal practitioner fails or neglects to comply with the provisions of the Chapter, such a legal practitioner will be deemed to have committed professional misconduct and will be liable to disciplinary proceedings in accordance with the Legal Practitioners Act.[viii]

However, it should be noted that the obligations mentioned above shall not apply to a legal practitioner who only provides notary services or merely certifies the execution or authenticity of a Power of Attorney or any other instrument.[ix]

THE NIGERIAN BAR ASSOCIATION ANTI-MONEY LAUNDERING COMMITTEE (NBAAMLC)

Under Chapter Two of the New Rules, the NBA is empowered to create an ad hoc committee described as the Nigerian Bar Association Anti-Money Laundering Committee (NBAAMLC) whose duties shall be to advise the NBA on the implementation and to monitor the compliance of firms or legal practitioners with respect to the New Rules.[x]

The NBAAMLC is empowered to take the lead in identifying money laundering and terrorism financing risks, identify the peculiarities of the legal sector, assess its controls and procedures, and publish them from time to time.[xi] The NBAAMLC has the duty to develop policies and the procedure for identifying legal practitioners or classes of legal practitioners who are at great risk of being used by criminals and criminal elements to launder monies or finance terrorism and communicate its findings to the NBA, amongst other things.[xii]

CONCLUSION

Although the New Rules revoked the Rules of Professional Conduct for Legal Practitioners, 2007, such revocation shall only become effective on the 31^st of December, 2023.[xiii] The New Rules are scheduled to take effect from the 1st of January, 2024.[xiv] This gives sufficient time for the sensitization, advocacy, and necessary structures to be put in place before the implementation of the Guidelines and Rules on Anti-Money Laundering and Combating Financing of Terrorism.

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[i] Cap. L11 Laws of the Federation of Nigeria 2004 as amended

[ii] Rule 55 of the Rules of Professional Conduct for Legal Practitioners 2023

[iii] Rule 57 of the Rules of Professional Conduct for Legal Practitioners 2023

[iv] Supra note 5

[v] Rule 57(5) of the Rules of Professional Conduct for Legal Practitioners 2023

[vi] Rule 58(1) of the Rules of Professional Conduct for Legal Practitioners 2023

[vii] Rule 58(3) of the Rules of Professional Conduct for Legal Practitioners 2023

[viii] Rule 57(2) of the Rules of Professional Conduct for Legal Practitioners 2023

[ix] Rule 57(4) of the Rules of Professional Conduct for Legal Practitioners 2023

[x] Rule 73(1) of the Rules of Professional Conduct for Legal Practitioners 2023

[xi] Rule 73(4) of the Rules of Professional Conduct for Legal Practitioners 2023

[xii] Rule 73(5) of the Rules of Professional Conduct for Legal Practitioners 2023

[xiii] Rule 75 of the Rules of Professional Conduct for Legal Practitioners 2023

[xiv] Rule 76 of the Rules of Professional Conduct for Legal Practitioners 2023

Written by Adeife Omolumo for The Trusted Advisors

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