The Civil Mediation Council have issued a guidance, dated 7 June 2010, talking about the obligations of mediators under the Proceeds of Crime Act 2002 (Money Laundering). The case of Bowman v Fels [2005] EWCA Civ 226; [2005] 1 W.L.R. 3083 (CA (Civ Div)) is helpful in relation to mediators (and other professionals) who are actively involved in litigation or arbitration.
The Civil Mediation Council guidance warns mediators to be careful where there are no existing legal or arbitration proceedings, or where the link is tenuous. In addition, where any settlement does not reflect the legal and practical merits of each party’s case, and is suspected to be no more than a pretext for agreeing on the acquisition, retention, use or control of [criminal] property, then this is something that needs to be looked at carefully to avoid any risk of falling foul of the draconian money laundering provisions.
Click here to read the full Civil Mediation Council report.