(English) Guidelines for Better Compliance with the Purposes of the Code of Conduct of The International Lawyers Association and Executive Decree No. 468

DEFINITIONS

Clients of the members of the Association shall be classified into one of the following categories:

– Professional (“correspondents”)

– Final Users (“users”)

1. Correspondents shall be the individuals or organizations to whom the Member provides services, by whom services are hired and who acquire companies in benefit or for use of third parties. Normally, these clients are law firms, banks, trust companies, accountants or similar professional associations.
2. Final Users are the clients that hire services from the Members directly for their own benefit, without intermediaries.

The Association’s position is that even if due diligence standards may not vary, the documentation and information required to be kept in the files of each client category may be different. For instance, it is clear that Correspondents who with certain frequency acquire companies for their reserve stock (shelves), they are in no position upon taking control of the company, to provide details regarding the identity of the Final User and all purposes for which the latter would acquire the company.

Members need to make sure that a good professional relation is maintained with clients that have an honorable personal and professional background and are respected in their countries of origin.

In the case of new clients, with whom Members have already have contact, satisfactory references ought to be obtained before starting any kind of professional relationship.

PROFESSIONAL CLIENTS

(CORRESPONDENTS)

In the opinion of this Association, the following procedures, information and documentation shall be followed and obtained regarding Correspondents:

1. Every Member shall procure that:

i.      Correspondents keep the same standards of care in dealing with their clients, as those required from members of this Association when dealing with Final Users directly;

ii.      Correspondents keep them informed when they stop representing any existing client or the owner/beneficiary of a company they represent changes;

iii.      Correspondent and/or their principals provide the information in the Form attached to these Guidelines, whether the Form is completed by the Correspondents themselves or by the Member (Member’s option).

2. Satisfactory evidence shall be obtained from a well reputed international entity.

FINAL USER CLIENT

In the opinion of this Association, the procedures, information and documentation established in respect of Correspondents above shall be also applicable to Final Users.

The Code of Conduct and Guidelines described above have been approved unanimously by the members of the International Lawyers Association, in Panama City today, the 7^th of June, 1995.