Under the fifth Anti-Money Laundering Directive, firms now have a duty to collect proof of registration for entities such as trusts and companies and inform the registry of any discrepancies in their information. They must also comply with changes to requirements on client due diligence and enhanced due diligence.
The Legal Sector Affinity Group (LSAG), which includes the Solicitors Regulation Authority (SRA) and other legal sector supervisors, is currently drafting updated guidance on the regulations. This will require Treasury approval and will be made available in the coming months.
Paul Philip, SRA Chief Executive, said: ‘The damage money laundering does to society means that every solicitor must be fully committed to preventing it. The vast majority would never intend to get involved in criminal activities, but the reality is that poor processes can open the door to money launderers.’
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