AML compliance refers to the legal and regulatory requirements that law firms must follow to prevent money laundering and terrorist financing. This includes verifying client identities, monitoring transactions, and reporting suspicious activity to the appropriate authorities.

• The Solicitors Regulation Authority
• Bar Standards Board
• Chartered Institute of Legal Executives (CILEx)
• Intellectual Property Regulation Board
• Council for Licensed conveyors
• Master of the Faculties
• Institute of Chartered Accountants in England and Wales

Legal services are as follows and are subject to anti money laundering regulations:

• Independent legal practitioner providing legal or notarial services, participating in transactions concerning; buying and sellers or real estate/business, managing client money or other assets, opening and management of bank, savings etc. accounts
• Conveyancing
• Commercial and corporate work
• Transactional work
• Trust and company work
• Tax work – excluding matters involving HMRC or Stamp Duty/ Land Tax
• Probate matters  – under the instruction of executors, or as an executor

• Yes, you do not need to meet clients in person to be able to verify them – there are multiple remote methods of verification
• Electronic 2+2 verification uses credit data to verify individuals, all you need is your clients name, date of birth and address.
• Physical ID documents can be remotely verified, confirming documents as genuine, verifying proof of address documents and checking documents against a photo of themself.
• Business verification no longer requires paper documentation, easily gather company and financial reports electronically.

• Customer Due Diligence is a legal requirement under the UK Money Laundering regulations of 2017. It is the process of identifying and verifying clients, and understanding the potential risk they pose.
• Clients and counterparties first need to be identified, including any beneficial owners, and verified independently, which can be through electronic, physical ID and financial report means.
• You need to understand the purpose and nature of the intended business or transaction relationship, and then assess the level of risk.
• Levels of due diligence can vary by risk level, ranging from simple to enhanced, depending on factors such as location/ jurisdiction, PEP status and client type.
• CDD should be performed before establishing a business relationship, if suspicion of money laundering or terrorist financing arises, or a change in client’s circumstances.

• A risk based approach is a requirement under the Money Laundering Regulations of 2017, and it means taking a flexible approach to your anti money laundering processes.
• You need to identify and assess the money laundering risks your business faces, and apply the appropriate measures, to be monitored and altered when needed.
• Conducting risk assessments will help you to evaluate potential risks, such as client type and services offered, and provide methods to overcome these.
• A risk based approach requires review and updates, for example when your risk profile changes, as new regulations come in, and if your services change.

• KYC (Know Your Customer) checks verify the identity of individual clients.
• KYB (Know Your Business) checks assess the legitimacy and ownership structure of corporate clients. Both are crucial for understanding who you’re doing business with and for meeting AML obligations.

To stay compliant:

• Conduct risk assessments.
• Implement a written AML policy.
• Perform regular client due diligence.
• Train staff on AML procedures.
• Use reliable AML software for checks and record-keeping.
• Report suspicious activity to the National Crime Agency (NCA).