CCR2 Compliance
Time for lawyers to make a change on AML
Law firms need to improve their money-laundering procedures, as half of those reviewed by SRA are put into disciplinary processes
John Dobson UK managing director, SmartSearch
john.dobson @
smartsearchuk.com
Last month, the Solicitors Regulation Authority (SRA) published the results of its review of 59 law firms, and the results were not good.
Breaches While the SRA found no evidence of actual money laundering, there were a number of breaches of Money Laundering Regulations and some serious failings in the legal sector. Paul Philip, SRA chief executive, said that
while most solicitors take their responsibilities seriously, too many are falling short and “need to improve swiftly”. Of the 59 practices reviewed, the SRA
found that 24 did not have proper risk assessments in place, and four had no risk assessment at all. It also found that 14 were failing to properly manage risks around PEPs (politically exposed persons).
Strong action As a result of its investigation, the SRA has put 26 of the 59 firms into its disciplinary processes and begun a further review of 400 other firms. More than 40 solicitors have been struck
off or suspended in the past five years following allegations relating to money- laundering regulations and the SRA has promised to take “strong action” where they have serious concerns that a firm could be enabling money laundering. There are around 7,000 SRA-regulated firms that fall under the scope of the money-
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laundering regulations, and if the lack of processes in the 59 reviewed is indicative of the industry as a whole, we could see upwards of 3,000 in the SRA’s disciplinary processes. There will, therefore, be many law
firms across the UK feeling very nervous right now.
No need to panic But there is no need to panic. If your law firm is not compliant, or you are not sure if it is compliant, or you just want to streamline your AML process, there is a simple solution. We offer a full-service solution that ensures
law firms are fully compliant with the latest Money Laundering Regulations and remain compliant with any future changes in the
legislation. Our platform negates the need for time-consuming, expensive and unreliable manual checks, instead offering a simple, one-stop-shop solution. It can be used as a standalone platform
or integrated into existing processes. We even offer a retro service, which means law firms whose processes have not been up to scratch can upload their current and past client base within 24 hours to ensure all their record keeping is up to date. To find out how SmartSearch can ensure
your law firm is compliant with the latest Money Laundering Regulations book a free demo today at
www.smartsearchuk.com/ contact/book-demo/1#contact-form CCR2
More than 40 solicitors have been struck off or suspended in the past five years following allegations relating to money-laundering regulations and the SRA has promised to take “strong action” where they have serious concerns that a firm could be enabling money laundering
June 2019
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