Anti-Money Laundering in 2020 - Is your firm doing enough?
In 2019 the Solicitors Regulation Authority conducted a review of law firms and found that 20% of them fail on money laundering compliance. This prompted the following statement of intent for 2020:
“We will increase checks on law firms after we found that too many were not complying with anti-money laundering regulations, and warned of strong action against those who continue to fall short” – SRA News Release 29th October 2019
One of the issues identified by the SRA is a lack of an “independent audit function” from the 2017 Money Laundering Regulations, Regulation 21(1) (c), where firms must “establish an independent audit function to review and make recommendations about your firm’s AML policies, controls and procedures, and its compliance with them.”
While a firm can take a “risk-based approach” on this subject, there is a strong expectation from the SRA that this function must be in place for firms carrying out any form of transactional work.
So, the question for your firm is, are you doing this?
If the answer is “no,” then the next question would be, what are you going to do about it?
Well, cpm21 may be able to help with the latter question. While it is a matter for the firm to decide whether the independent audit function is internal or external, many may find it convenient to outsource the function*.
So, if you want to avoid issues related to your firm’s Independent Audit Function* from an SRA Anti-Money Laundering Audit, contact us at cpm21 today to see how we can help