In this episode of The AML Clinic Podcast, Michelle Clement speaks with Christian Hunt, author of Human Risk, about why compliance failures in law firms are rarely caused by bad individuals and are more often the result of poorly designed systems.

They explore how behavioural science can improve AML and compliance outcomes, why traditional approaches like policies and training often fail, and how firms can better engage legal professionals in day-to-day compliance decision-making.

A practical conversation for AML, compliance and risk professionals working in or with law firms.

In this episode of the AML Clinic podcast, host Michelle Clement interviews Luke Haddon, the money laundering reporting officer at Keystone Law. They discuss Luke's career path, the proposed changes to the UK's money laundering regulations, and the implications of these changes for law firms. Luke expresses concerns about the introduction of pooled client accounts and emphasizes the importance of a risk-based approach to compliance. He also highlights the need for a collaborative culture between compliance teams and legal practitioners to ensure effective compliance and protect clients' interests.

In this episode of the AML Clinic Podcast, Michelle Clement and Eloise Butterworth discuss the evolving legislative landscape for law firms, focusing on AML compliance, resourcing hurdles, and the role of technology. Eloise shares her journey from family law to risk and compliance, emphasising the importance of clarity, training, and culture in managing AML obligations. They also explore the financial viability of law firms while meeting compliance standards and bust common myths about AML practices.

Links referenced

SRA annual report -solicitors-regulation-authority-limited-financial-statements-2024.pdf

SRA training checklist - aml-training-checklist.pdf

SRA | Sole practitioners' and small firms' use of technology and innovation | Solicitors Regulation Authority

See Customer due diligence section - SRA | Compliance with the regulations and preventing money laundering Q&A | Solicitors Regulation Authority

In this episode of the AML Clinic podcast, host Michelle Clement and guest Alison Matthews delve into a case study involving a conveyancing matter and the application of the Proceeds of Crime Act (POCA). They discuss the importance of verifying the source of funds, the challenges of anti-money laundering compliance, and the role of the Money Laundering Reporting Officer (MLRO). The conversation also covers the concept of criminal property, the Spanish bullfighter exception, and the balance between confidentiality and reporting obligations.

Takeaways

• Verifying source of funds in transactional and non transactional matters.
• The role of the MLRO in anti-money laundering compliance.
• Learn about the concept of criminal property under POCA.
• Explore the Spanish bullfighter exception in legal contexts.
• Balance confidentiality with reporting obligations in legal practice.
• Identify the challenges of anti-money laundering compliance.
• Discuss the principle of fungibility in financial transactions.
• Examine the role of legal professional privilege in reporting.
• Highlight the need for ongoing training in compliance.

Spanish Bullfighter LSAG reference

https://www.sra.org.uk/globalassets/documents/solicitors/firm-based-authorisation/lsag-aml-guidance.pdf#=page193

In this episode of the AML Clinic podcast, host Michelle Clement and guest Alison Matthews delve into a case study involving a conveyancing matter and the application of the Proceeds of Crime Act (POCA). They discuss the importance of verifying the source of funds, the challenges of anti-money laundering compliance, and the role of the Money Laundering Reporting Officer (MLRO). The conversation also covers the concept of criminal property, the Spanish bullfighter exception, and the balance between confidentiality and reporting obligations.

Takeaways

• Verifying source of funds in transactional and non transactional matters.
• The role of the MLRO in anti-money laundering compliance.
• Learn about the concept of criminal property under POCA.
• Explore the Spanish bullfighter exception in legal contexts.
• Balance confidentiality with reporting obligations in legal practice.
• Identify the challenges of anti-money laundering compliance.
• Discuss the principle of fungibility in financial transactions.
• Examine the role of legal professional privilege in reporting.
• Highlight the need for ongoing training in compliance.

In this episode of The ANL Clinic, we dive into one of the most critical and often misunderstood areas of financial crime prevention: the difference between source of funds and source of wealth.

We explore a real Solicitor Disciplinary Tribunal case involving a politically exposed person, a £1.1 million transaction and a £1.9million transaction, and serious gaps in due diligence.

Key takeaways:

• Why distinguishing source of funds vs source of wealth matters
• The risks of relying on third-party assurances
• How compliance failures can lead to disciplinary action

SRA | Thematic review of source of funds and wealth compliance | Solicitors Regulation Authority

In this episode of the AML Clinic podcast, host Michelle Clement interviews Christopher Christou, a solicitor who shares his experiences with SRA AML inspections. The conversation covers the emotional journey of receiving an inspection notice, the preparation involved, and the importance of compliance in law firms. Christopher discusses the challenges of running a small firm, the role of technology in compliance, and the need for a culture of compliance within teams. The episode concludes with myth-busting in AML compliance, emphasising the importance of diligence and awareness in the legal profession.

Links

SRA | Guidance on our firm inspections | Solicitors Regulation Authority

SRA | Sole practitioners' and small firms' use of technology and innovation | Solicitors Regulation Authority

In this episode of the AML Clinic, Michelle Clement and Graham Mackenzie discuss the critical issue of money laundering in law firms. They explore the vulnerabilities within legal services, particularly in conveyancing, the role of trust and company service providers (TCSPs), and the implications of tax advice. The conversation also addresses the risks associated with probate and busts the myth that firms without client accounts are not at risk of being used for money laundering. The episode emphasizes the importance of understanding the source of funds and the impact of legal work on local communities.