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adversaries have been unable or unwill- ing to forge a decent compromise, and are resuming legal fisticuffs after a 10-year stalemate. The litigation could easily end up at the Supreme Court of Canada, which means it will be years before it is finally resolved. No one is well served by this. Lately lawyers are saying the govern- ment is indirectly attacking the profes- sion's power of self-regulation, but I don't see that. The government has legitimate concerns. Money laundering and terrorist financing are a national and international problem. A few Canadian lawyers have participated in these criminal activities, hiding behind solicitor-client privilege. On the other hand, the principle of solicitor- client privilege is central to what a lawyer does and must be appropriately guarded. There are two opposing considerations, but surely it is possible to reconcile them. The key is to develop a precise defi- nition of a suspicious financial transac- tion that must be reported. FINTRAC has identified a number of money laundering and terrorist financing "typologies." For example: multiple cash deposits in a short time and below the reporting threshold, alternating between bank branches or ATMs, followed by cash withdrawals; large cash deposits by various individuals in different locations followed by electronic fund transfers to foreign countries, often in Asia; numerous electronic fund trans- fers to one money services business and associated individuals from someone in a country of concern. These and many other so-called typologies are clearly associated with money laundering or terrorist financ- ing. What plausible argument is there that the principle of solicitor-client privilege should exempt a lawyer reporting such activity to the authorities? It is well understood that a clear and important public interest may trump the principle of solicitor-client privilege. The Supreme Court of Canada found this to be so in the 1999 case of Smith v. Jones. The issue there was whether a psychi- atric report commissioned by a defence lawyer, which said his client was likely to assault and possibly kill prostitutes, was subject to solicitor-client privilege. The court decided the danger to public safety justified setting aside privilege. Three fac- tors, it said, should be taken into consider- ation in determining whether public safety outweighs solicitor-client privilege: (1) Is there a clear risk to an identifiable person or group of persons? (2) Is there a risk of serious bodily harm or death? (3) Is the danger imminent? It is doubtful (but not impossible) that a lawyer's suspicion of money laundering or terrorist financing will meet the Smith v. Jones "clear, serious, and imminent" test. But the accepted public-safety exception to solicitor-client privilege shows privilege does not always prevail. The legal profes- sion and the government would do us all a favour if they stopped grandstanding, went back to the negotiating table, and worked out a compromise which could easily be based on a precise definition of "suspicious financial transaction." Philip Slayton has been dean of a law school and senior partner of a major Canadian law firm. His latest book is Mighty Judgment: How the Supreme Court of Canada Runs Your Life. Visit him at philipslayton.com. ATLANTIC LEGAL TELEPHONE DIRECTORY 2011-2012 CONNECT TO THE EAST COAST LEGAL NETWORK Get names, mailing addresses, email addresses and phone numbers for lawyers and law offices in the Atlantic provinces. Compiled by Canada Law Book's renowned directories group, the Atlantic Legal Telephone Directory is your source of essential east coast legal contact information. In addition to up-to-date and accurate listings for lawyers and law offices, you also have quick and easy access to: • • • • Perfectbound • June 2011 One time purchase $36.50 L88804-531 On subscription $36.50 L88804-531-26059 Multiple copy discounts available Prices subject to change without notice, to applicable taxes and shipping & handling. • • • • • • • • law/barristers' societies Canadian Citizenship Courts Courts of Appeal Federal Court of Canada • Government of Canada departments and regional offices incorporated municipalities judicial districts and judicial officials land registration and information services The Associations of Land Surveyors The Law Foundation provincial government departments boards and commissions university law faculties Visit canadalawbook.ca or call 1.800.387.5164 for a 30-day no-risk evaluation CANADA LAW BOOK® www.CANADIAN Lawyermag.com JUNE 2011 19 Atlantic - 1/2 island.indd 1 5/5/11 11:47:10 AM ... and much mor e.