Earlier this year, the UK’s Solicitors Regulation Authority (SRA) issued new guidance to help combat money laundering. The SRA has urged law firms to verify that they are abreast with these recent updates to money laundering legislation by reading two new pieces of national sector-wide guidance issued on the subject.
The SRA has published a sectoral risk assessment analysing the specific risks and challenges within legal services. This report, called the Legal Sector Affinity Group (LSAG) 2020 guidance, discusses the amended and old AML regulations that law firms must be aware of. The SRA recommends that firms use this guidance to develop their own risk assessments and implement appropriate AML policies.
One of the key changes in the new LSAG guidance is the detailed guideline on source of funds and wealth. Another change is the addition of a section that discusses why firms must understand the technology they are using so as to use it appropriately. The new guidance also explains high-risk sectors, cash deposits in client accounts and customer due diligence.