The Legal Sector Affinity Group (LSAG) guidance has now been approved by HM Treasury, although this comes with some changes to the original guidance issued in 2021. This specific regulation sets out that when judging whether a legal practitioner or practice has committed an offence by not following the regulations, the court must decide whether the guidance has been followed. The LSAG guidance is an invaluable aid to those in the legal sector and has been written in light of changes to the Regulations. While an invaluable aid to those in the legal sector, the complex guidance is over 200 pages long.
What changes were made to the LSAG guidance?
The changes were generally minor, with many simply corrections or formatting changes. One of the more notable changes was updated content around the verification of the identities of beneficial owners. Under the latest guidance, the verification process for beneficial owners is expected to be of the same standard as a natural person. The new guidance also sees a move away from the EU’s high-risk third country list and towards the adoption of the UK’s own list. Lastly, there is some clarification on key terms such as what is deemed “an arrangement” with regards to the Proceeds of Crime Act and additional clarification on the defence of “adequate consideration”.
Core Concepts of the LSAG Guidance – VinciWorks’ Free Guide
VinciWorks has created a concise guide highlighting the core concepts of the LSAG guidance, including practical tips. The guide includes an introduction to the guidance, an overview of risk assessments, what you need to know about Client Due Diligence (CDD), Enhanced Due Diligence (EDD), and Simple Due Diligence (SDD), and how the use of technologies such as Omnitrack can be helpful in carrying out risk assessments, CDD, ongoing monitoring, and ‘just in time’ training.
