Accountant found criminally liable in money laundering case

The investigation focused on the illegal enrichment of a former government official who was accused of receiving bribes during his tenure and laundering ill-gotten gains through a series of shell companies. Several individuals were charged as accessories to the money laundering operations, including the CPA for one of the relevant companies.

The CPA pled not guilty, arguing that he complied with all regulatory requirements for the relevant transactions. He further claimed that the operations showed no money laundering red flags, as they were executed by independent companies, at arm’s length, with proper documentary support and through licensed financial entities.

In this context, federal authorities held that the CPA knew ̶ or at least had serious reasons to suspect ̶ of the illegal source of the relevant assets.

Upholding the decisions of the trial court and the Federal Court of Appeals, Division II of the Federal Court of Cassation confirmed the defendant’s indictment as an accessory to the crime of money laundering.

This is an interesting precedent on the liability of CPAs for their clients’ money laundering activities, as it clarifies that criminal sanctions may be imposed even in the absence of regulatory or administrative violations.