3 Aml Onboarding Tips For Law Firms

Ensuring efficient AML onboarding for law firms can be challenging without the know-how and proper tools. It's crucial to prioritise client protection when changing up your AML strategies.

With that said, we offer top tips to help streamline AML onboarding and stay on top of your AML compliance measures.

1. Practice due diligence

When it comes to compliance with AML onboarding for law firms, you can't take your client's word for it. Case in point, firms rely on a client's declaration that they are a politically exposed person instead of conducting the checks themselves. Law firms must conduct due diligence and refuse clients accounting for AML concerns. If your firm has never rejected clients due to AML, it's essential to ask: is your current system reliable?

How can you enhance your AML onboarding and client due diligence efforts? First, it's crucial to set a straightforward process for keeping ID information and third-party provider data. The process must also be for strict adherence.

If all the information is not where it's supposed to be, this can create issues during auditing. Be sure to have a clear-cut process that's secure and well-managed. It also helps to have a content management system to organise your files and improve your system further.

2. Monitor and identify PEPs thoroughly

Maintaining a reliable system for managing ID checks for politically exposed persons (PEPs) is crucial. Regulators will inspect how your firm identifies PEPs and how you determine their risk level.

The main risk areas you must consider are: if they have possible involvement in funding terrorism knowing their position or if they have access to terrorist financing reserves. Next, you must identify if their circumstances make them susceptible to corruption and bribing.

Whether or not you have a long-term client certificate, you must be thorough and conduct frequent ID checks, especially for PEPs. To carry out this step, you must not take shortcuts in verifying and double-checking your client's information.

3. Utilise and understand how AML onboarding technology works

Employing AML technology is one of the most effective methods to streamline your AML onboarding compliance efforts. While technology and due diligence can ease your workload, those working on your AML must understand the technology thoroughly. This understanding will ensure they're using it to its optimal capacity.

Upon choosing an AML provider, coordinate with them to conduct a training series on how to use their AML technology, whether operable through a mobile application, software, or both. There must be a clear standard on what constitutes a pass or fail when navigating their AML app or software.

Whether utilising a new system for AML onboarding for law firms or already using the technology set, ensure that your team can operate it comfortably. Review the effect of the technology and check if it's secure and sufficient for AML onboarding compliance.

By streamlining AML onboarding for law firms, you can save time and resources on keeping your firm AML compliant and focus on your law practice instead.