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AML audit – new requirement from regulators

On the 20th January 2021 the LSAG published new Anti-Money Laundering Guidance for the legal sector which states that ‘The practice must conduct an independent audit of the adequacy and effectiveness of its AML policies, controls and procedures’.

Legal Eye offers an audit service to fulfil this requirement. The audit report summarises an evaluation of your AML policies, controls and procedures and set out recommendations regarding the adequacy and effectiveness of the practice’s anti-money laundering and counter-terrorist financing policies, controls, and procedures (PCPs).

The report will identify whether these are adequate and whether they are working as they should. It also sets out any areas of non-compliance, both with the MLR 2017 and with the firm’s policy, identified during the audit.

The audit will consist of:

• Access to information—including your AML and CTF risk assessment, policies, training records, files and suspicious activity report and breach registers
• Access to relevant staff
• Testing the effectiveness of existing procedures and controls
• Testing of any automated systems in use by the firm
• Record-keeping
• Training
• Random selection of files for review focused on the AML aspect of the file

If required, we can then provide you with a quotation to conduct the work to resolve the corrective actions. This additional work can be tailored to your specific needs and budget and would include a resolution report confirming that the corrective actions have been completed.

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