-By A Special Correspondent
(Lanka-e-News -21.Nov.2024,11.40 pm) In the labyrinth of Sri Lanka’s legal profession, where advocacy and the rule of law meet the demands of justice, the issue of payment practices among lawyers has sparked a heated debate. While the vast majority of Sri Lankan lawyers maintain ethical standards and issue proper receipts for their services, concerns have surfaced about a minority of practitioners accepting cash payments without adequate documentation.
This alleged malpractice not only undermines the profession’s reputation but also exposes it to accusations of money laundering, tax evasion, and associations with unscrupulous clients. As Sri Lanka grapples with these challenges, there is a growing call to reform the way lawyers handle payments, with proposals to ban cash transactions altogether and mandate payments through bank transfers. Such reforms, proponents argue, would enhance transparency, protect the profession’s prestige, and align it with global best practices.
Sri Lanka is home to a diverse legal community that spans a range of specializations, from criminal defense and constitutional law to corporate advisory and family law. Lawyers are integral to upholding justice, representing clients, and safeguarding citizens’ rights.
However, the financial realities of the profession paint a sobering picture. Many Sri Lankan lawyers struggle to secure consistent work, especially those practicing outside Colombo or in less lucrative areas of law. With low fees compared to international standards, the financial stability of lawyers varies widely, leading some to compromise on ethical practices in pursuit of clients.
Despite the accusations, it is crucial to note that most Sri Lankan lawyers adhere to ethical norms. They issue receipts, follow standard fee structures, and operate within the boundaries of the law. These professionals understand the importance of maintaining the integrity of their work and safeguarding the reputation of the legal fraternity.
Unfortunately, the actions of a small segment of lawyers have cast a shadow over the profession. Reports suggest that some lawyers, struggling to attract clients, resort to soliciting business outside court complexes and accepting cash payments without documentation.
This practice, critics argue, diminishes the profession’s dignity, turning legal services into a commodity traded on the steps of justice. It also raises questions about the transparency of such transactions and their implications for tax compliance and money laundering regulations.
Cash payments, while convenient for some clients, pose significant risks for lawyers and the profession as a whole.
1. Lack of Documentation: Cash transactions often leave no paper trail, making it difficult to verify payments or resolve disputes.
2. Tax Evasion Allegations: Without proper receipts, lawyers may face accusations of underreporting income and evading taxes, tarnishing the profession’s image.
3. Money Laundering Risks: Accepting large sums of cash from unknown clients can expose lawyers to allegations of facilitating illicit financial activities.
4. Reputation Damage: The perception of lawyers as “market traders” waiting outside court complexes undermines the prestige and respectability of the profession.
To address these challenges, many experts and legal professionals advocate for a shift toward mandatory bank transactions for legal payments. This reform, they argue, would bring several benefits:
1. Enhanced Transparency: Bank transactions provide a clear record of payments, ensuring accountability and reducing the risk of disputes.
2. Tax Compliance: With all payments documented, lawyers would be required to report their full income, contributing to national revenue and aligning with the example set by high-profile legal figures like former Foreign Minister Ali Sabry, who has publicly stated his significant tax contributions.
3. Elimination of Suspicion: Banning cash payments would shield lawyers from accusations of unethical practices or associations with corrupt individuals.
4. Global Recognition: Adopting international payment standards would enhance the reputation of Sri Lankan lawyers, showcasing them as professionals who prioritize ethics and transparency.
Many countries have already implemented strict regulations on payment practices in the legal profession.
• United Kingdom: Lawyers are required to operate through registered firms, with all client payments documented and processed through official accounts. Cash payments are rare, and strict anti-money laundering regulations ensure compliance.
• Australia: Law firms must maintain trust accounts for client payments, with detailed records and regular audits to prevent financial irregularities.
• Singapore: The legal profession is highly regulated, with clear guidelines on fees, payment methods, and financial transparency.
Sri Lanka can draw from these examples to create a regulatory framework that upholds the integrity of its legal profession while addressing the unique challenges of the local context.
1. Mandatory Bank Payments: Require all legal fees to be paid through bank transfers or digital payment systems, with receipts issued for every transaction.
2. Registration of Legal Practices: Mandate all practicing lawyers to operate through registered firms, ensuring accountability and professional standards.
3. Audit Mechanisms: Introduce periodic audits of legal practices to verify financial records, monitor compliance, and identify irregularities.
4. Client Protection Measures: Establish a regulatory body to handle complaints and disputes related to legal fees, ensuring clients receive fair treatment.
5. Public Awareness Campaigns: Educate clients on their rights to demand receipts and report unethical practices, fostering a culture of transparency.
While these reforms hold promise, their implementation is not without challenges.
• Resistance from Practitioners: Some lawyers, particularly those in smaller towns or struggling financially, may resist the shift to cashless payments, citing practical difficulties.
• Infrastructure Gaps: Ensuring access to banking facilities and digital payment systems across the country is essential for successful implementation.
• Enforcement Issues: Regulators must have the resources and authority to enforce compliance and address violations effectively.
The Bar Association of Sri Lanka (BASL) has a pivotal role to play in driving these reforms. As the representative body for lawyers, the BASL can:
• Advocate for legislative changes to mandate cashless payments.
• Provide training and resources to help lawyers transition to new payment systems.
• Set up a monitoring mechanism to ensure compliance and address grievances.
The legal profession is often referred to as a noble calling, grounded in principles of justice, ethics, and service. In Sri Lanka, lawyers have historically played a vital role in upholding the rule of law and defending the rights of citizens.
By embracing transparency and modernizing payment practices, the legal community can reaffirm its commitment to these principles. Such reforms would not only enhance the profession’s reputation but also ensure its alignment with global standards, positioning Sri Lankan lawyers as leaders in ethics and professionalism.
The allegations of cash payments and unethical practices may involve only a minority of Sri Lankan lawyers, but their impact on the profession’s reputation is significant. It is imperative to address these issues decisively, not only to restore public trust but also to protect the integrity of the legal fraternity.
Reforming payment practices is a crucial step in this direction. By mandating bank transfers, enhancing transparency, and holding lawyers accountable, Sri Lanka can set a new benchmark for ethical practice in the legal profession.
For the thousands of talented and hardworking lawyers who uphold the highest standards of their profession, these reforms are not just necessary—they are a chance to reclaim the respect and prestige they rightfully deserve. It is time for Sri Lankan lawyers to lead by example, proving that justice and integrity go hand in hand.
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by (2024-11-21 22:54:41)
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