Letter Rogatory
Definition
A letter rogatory is a formal written request issued by one court to the judiciary of a foreign jurisdiction asking that court to perform a judicial act on its behalf.
These acts commonly include serving process or obtaining testimony and evidence located in another country.
In the context of AML/CFT, letters rogatory may be used for obtaining evidence of cross-border financial crime, money laundering, terrorist financing, or sanctions breaches when assets, witnesses or documents are located abroad and cannot be accessed through domestic means alone.
Explanation
The mechanism of a letter rogatory draws on the principle of international comity, respect between sovereign courts, and acknowledges that a domestic court cannot directly exercise its power over persons, evidence, or assets outside its territorial jurisdiction.
Therefore, the requesting court invites the foreign judiciary to act as its surrogate in obtaining evidence or accomplishing a judicial task.
This instrument is typically used when no bilateral or multilateral treaty (such as a Mutual Legal Assistance Treaty) specifically governs the request, or when the other mechanisms are insufficient or unavailable.
While letters rogatory remain used for civil and criminal matters, their use has diminished in some jurisdictions where more streamlined alternatives exist (for example, under U.S. law 28 U.S.C. § 1782 or through conventions such as the Hague Evidence Convention).
The process can be lengthy, as transmission often involves diplomatic or consular channels, translation of documents, authentication, and local legal procedures in the foreign jurisdiction.
Letter Rogatory in AML/CFT Frameworks
Within AML/CFT programmes, a letter rogatory plays a vital role when financial investigations involve multiple jurisdictions.
Its relevance is particularly strong when:
- Records or witnesses relevant to money laundering, terrorist financing, or sanctions evasion are located abroad.
- Correspondent banking or complex cross-border networks are involved, and domestic evidence is insufficient.
- Financial institution controls and investigations must link to foreign courts or regulators for asset tracing or prosecution.
Key intersections include:
Customer and Beneficiary Investigations
When a financial institution’s internal analytics identify a foreign-resident indirect beneficial owner or actor whose testimony is required, a letter rogatory may be one of the legal tools to secure cooperation.
Entities with complex offshore structures may hide behind jurisdictional barriers; a foreign court may be requested via letter rogatory to compel disclosure of underlying documentation.
Asset-Tracing and Freezing Orders
A domestic regulator seeking to trace assets held overseas may rely on a letter rogatory to secure assistance from a foreign court to freeze or seize assets, or to require the foreign judiciary to obtain underlying ownership and transfer records.
This tool supplements internal AML screening when funds have moved through several jurisdictions or are held in low-transparency corporate vehicles.
Evidence Gathering for STRs and Enforcement
In cases of suspected financial crime, an institution may file a suspicious transaction report (STR) referencing evidence obtained via a letter rogatory, demonstrating international cooperation.
Regulators expect institutions to design AML/CFT controls that recognise these transnational challenges and incorporate them into risk assessments and due diligence frameworks.
Correspondent Banking and Payment Channels
Banks providing correspondent or intermediary services must anticipate inherent risks of cross-border exposure. Should a challenge arise, letter rogatory processes may support investigations of foreign correspondents, maintaining audit trails and regulatory compliance.
Key Components of a Letter Rogatory
Formal Request Elements
- An explicit statement of international judicial assistance, stating the requesting court’s interest in the matter.
- Identification of the court, parties, case number, and nature of the proceedings (civil, criminal, administrative).
- Precise description of the assistance required (e.g., “take testimony of X”, or “produce documents of Y”).
- Name, address, and identifiers of the person from whom service or evidence is sought.
- List of documents or questions to be asked, if evidence is sought.
- Statement of reciprocity, an indication that the requesting court is willing to assist the foreign judiciary in return.
- Signature of the judge and court seal as required by foreign jurisdiction for authentication.
Transmission and Authentication
- Many jurisdictions require translation of the request into the official language of the receiving state and an affidavit of translation validity.
- Documents may be transmitted via diplomatic channels, foreign ministries, or via the designated central authority under treaties.
- The foreign court evaluates the request under its local laws, may decline if it violates sovereignty or public policy.
Execution by the Receiving Court
- The foreign judiciary acts to serve process, gather testimony or evidence, or execute other requested functions.
- Execution is subject to the foreign country’s rules on evidence, disclosure, confidentiality, and the rights of parties involved.
- Return of the executed request includes transcripts, certified copies of documents, or a certificate of completion.
Examples of Letter Rogatory Scenarios
- A domestic bank identifies a suspicious transfer of funds from Country A to Country B involving a high-value beneficiary in Country C. The domestic regulator issues a letter rogatory to the foreign court in Country C requesting disclosure of beneficiary identity and source of funds.
- In a money-laundering investigation, a foreign witness resides in another jurisdiction. The court issues a letter rogatory to compel the witness to provide oral testimony before the foreign court, which then sends the transcript back.
- A sanctions investigation discovers documents held by a foreign entity. The domestic court requests the foreign judiciary via letter rogatory to seize and forward those documents under their procedural rules.
Impact on Financial Institutions
- Institutions with global operations must design their AML/CFT frameworks to accommodate cross-border legal assistance mechanisms such as letters rogatory; failure may expose them to gaps in investigations or regulatory scrutiny.
- Understanding the operational timelines and legal constraints of letters rogatory helps institutions set realistic expectations for investigations involving foreign jurisdictions.
- Good cooperation between legal, compliance, investigations, and transaction-monitoring teams ensures the institution can collaborate with authorities when a letter rogatory is needed.
- Including the possibility of letters rogatory in risk assessment and due diligence processes enhances the institution’s preparedness for complex cross-border investigations.
Challenges and Considerations
- Letters rogatory tend to be time-consuming, often taking many months or even over a year, depending on diplomatic channels and foreign judicial processes.
- The foreign court has discretion to refuse execution if the request is incompatible with its internal law, sovereignty, or public policy.
- Differences in legal systems, language requirements, evidentiary procedures, and confidentiality rules may complicate execution.
- Financial institutions must prepare for data privacy, confidentiality, and bank secrecy issues when evidence lies abroad.
- For AML/CFT purposes, institutions must ensure internal case-management systems link domestic data, foreign assistance, and due diligence steps seamlessly.
Regulatory Oversight & Governance
- While not a regulatory instrument per se, letters rogatory are under the umbrella of mutual legal assistance and judicial cooperation frameworks that regulators expect institutions to understand and plan for within their AML/CFT programmes.
- Institutional governance should involve senior management oversight of cross-border investigation processes, including coordination with legal, compliance, and investigations units.
- Audit and internal-controls functions should verify that procedures for cooperating with foreign judicial requests (including letters rogatory) are documented, tested, and integrated into AML/CFT governance frameworks.
Importance of Letters Rogatory in AML/CFT Compliance
Financial crime investigations increasingly span multiple jurisdictions, and illicit actors exploit weaknesses in one country to hide evidence or assets abroad.
Letters rogatory provide a structured mechanism for bridging this gap. Institutions that can coordinate effectively with authorities, support cross-border evidence-gathering, and integrate such processes into their AML/CFT frameworks are better positioned to:
- Support thorough investigations into money laundering, terrorist financing, and sanctions violations.
- Demonstrate to regulators that cross-border risks are understood and mitigation plans are in place.
- Protect themselves and their customers from the consequences of incomplete international cooperation.
- Maintain robust compliance frameworks that consider not only domestic controls but also global legal assistance dynamics.
Related Terms
- Mutual Legal Assistance Treaty (MLAT)
- Evidence Collection Abroad
- Cross-Border Service of Process
- International Judicial Assistance
- Asset Tracing
- Letters of Request
References
- U.S. Department of Justice, “Letters Rogatory”, Criminal Resource Manual (archived)
- U.S. Department of State, “Preparation of Letters Rogatory – International Judicial Assistance”
- Cornell Law School, Legal Information Institute (LII) – “Letters Rogatory”
- Courthouse Libraries BC, “Letters rogatory and letters of request”
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