The SRA recently confirmed that in the future they are likely to ask law firms for even more information about what they are doing to combat the risk of facilitating money laundering.
The UK is seen as a high risk jurisdiction for money laundering, with Law firms and Solicitors considered attractive because of the position of trust they hold. Firms carrying out conveyancing work, handling client money, and manging Trusts are seen as most at risk. At LFBB we are aware of the high risk nature of those areas of our work and we apply appropriate client due diligence checks across the board. Because we offer our clients a breadth of legal services we often have to carry out enhanced due diligence for what may seem to our client to be routine work.
You may wonder why we are asking for sight of your ID and for you to confirm other personal information including the source of funds even when you are known to the firm. It is in order to comply with our Regulator’s rules governing anti money laundering procedure.
Mark Boyle, the policy lead on anti money laundering for the SRA, spoke of the issues at the annual compliance conference earlier this year, stating:
“The key is knowing who your client is and understanding who your client is and understanding why they have come to you – does it make sense?”.
It is not enough simply to ask questions, but the questions and the answers must be evidenced and there are strict penalties for failing to do so.
Compliance is no longer simply a box ticking exercise. It is those firms that still see compliance in that light that give the criminals the access to credibility and respectability that they need. This is why you may find we are persistent in checking your ID and checking your credentials. We are not doing it for the sake of our health, we are doing it to protect you and to protect the financial and legal systems in this country.
If you have any questions or concerns about ay communications you have received or our client due diligence then please feel free to contact our team at LFBB on 0114 272 9721.