Final warning – Get your AML systems in place, says SRA
The SRA remain concerned about the apparent failure of many law firms to comply with money laundering requirements – in fact, they found a fifth of the law firms whose risk assessments they reviewed are falling short.And the ‘coincidental’ timing of some of the risk assessments submitted to the SRA, understandably raised suspicion that they were newly created, despite the requirements coming in two-and-a-half years ago.
7,000 firms to be contacted – what should you do?
The SRA are upping the ante by warning that they will now be checking 7,000 firms for AML compliance. They have issued an updated warning notice and helpfully put together some further guidance, a checklist and template.
If you have so far escaped the SRA’s scrutiny, review your AML systems, making the firm-wide risk assessment a priority. If you don’t have one – remedy that immediately. Don’t wait to be contacted by the SRA – their patience is clearly wearing thin and they are threatening enforcement action if firms don’t comply.
If you are using or intend to use a template, give thought to each individual matter and the risks this may present – they can sniff out a cut-and-paste job a mile off.
As always, be vigilant and contact us if you need some extra support.
SRA issues latest Risk Outlook
The identified risks are:
- Anti-money laundering
- Client money
- Diversity in the profession
- Information and cyber security
- Integrity and ethics
- Investment schemes
- Managing claims
- Meeting legal needs
- Standards of service
Read our summary of the Risk Outlook
SRA COLP and COFA conference – now available on YouTube
On 30th October, 1,200 delegates attended the annual SRA conference for Compliance Officers in Birmingham. Hats off to them, it was a well-organised event. Much of the discussion was focused on the new Standards and Regulations, unsurprisingly.But AML was definitely the theme of the day. They really mean it, you know.
Couldn’t make it? Catch up online
Practice notes and guidance
- SRA Guidance note: Representing people who lack mental capacity. I would link to this new guidance, but it seems that it was swiftly taken down after an unfortunate error was made in the first version (see here if interested). A timely reminder that useful guidance should be downloaded and kept, lest it disappears!
- SRA guidance: Firm wide risk assessments – see above
- SRA guidance: Conflicts of interest – to complement the incredibly short section on conflicts in the Code(s) of Conduct. (The 2007 Code wins the prize for the most long-winded rules on conflicts).
- Law Society advice: Professional indemnity insurance overview – useful if starting up in practice
- Law Society advice: What happens if you cannot renew your PII – summary: things get difficult
- Law Society advice: Professional indemnity insurance and in-house solicitors
- Law Society advice: No-deal Brexit guidance: Immigration implications for law firms
Disciplinary decisions
- One struck off, two heavily fined for getting caught up in a dubious scheme, and allowing the client account to be used as a banking facility
- Jonathan Leslie Horner struck off allowing gifts to be made to himself and members of his family
- Brian Milner-Lunt struck off for overcharging estates, mismanaging client money, and failing to cooperate with an investigation
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