Money laundering is one of the nine priority risks for the legal profession in the Solicitors Regulation Authority [SRA] Annual Risk Outlook and an SRA review in October 2019 showed that a fifth of law firms fail on money laundering compliance.
The SRA subsequently increased compliance checks on some 7,000 law firms and warned of strong enforcement action against those who continue to fall short because poor processes open the door to money launderers.
Set against this backdrop, the 5th Money Laundering Directive (5MLD) came into being in January 2020 and is now known as The Money Laundering and Terrorist Financing (Amendment) Regulations 2019. 5MLD has increased compliance requirements which impact the legal sector.
This content sheds light on:
• The key requirements affecting law firms.
• The requirements of the 4th Money Laundering Directive (4MLD) and the key additional requirements of 5MLD affecting the legal sector.
• How CRIF’s proprietary tool AML Check can support the legal sector to fulfil obligations related to 5MLD.