This week we surveyed a wide range of UK law firms on their approach to AML. The survey explored firms’ biggest AML challenges, different approaches to risk assessments, ongoing monitoring, AML audits and more.
Key findings:
The biggest AML challenge is identifying the source of funds/wealth
Matter risk assessments are a struggle for 50% of firms
58% of firms carry out independent audits through an external firm
28% of firms feel they wouldn’t be prepared if they received a notification of an SRA visit
64% of firms don’t believe the SRA and Law Society provide enough guidance to help firms stay AML compliant
Now more than ever, companies are expected to have a positive impact on society and the planet. Customers are increasingly considering sustainability in their purchases, with upwards of 75% of millennials reporting they do so. Investors also expect companies to understand these issues, with the value of sustainable fund assets doubling over the last two years to $2.7 trillion according to Morningstar.
But addressing these stakeholders and attempting corporate sustainability can be an alphabet soup of different terms, topics, and targets. Two of the most common buzzwords are CSR and ESG. While they are often used synonymously, CSR and ESG are distinct concepts. In this article, we will explore their definitions, whether we need both, and how they are evolving.
ESG – Environmental, Social and Governance – helps businesses measure their impact on the world. It goes broader than profit and loss and is more detailed than corporate social responsibility.
Over the past year, we have fielded hundreds of questions during our ESG webinars. From how to get started to understanding how to choose the proper ESG framework, businesses at all stages in their ESG journey have unanswered questions.
In this webinar, Director of Learning and Content Nick Henderson and Director of Product Alona Stern answered attendees’ ESG questions.
In July 2021, HM Treasury launched a new AML consultation entitled ‘Amendments to the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs)’. The planned updates, most of which are coming into force on 1 September, are required to ensure that the UK continues to meet international AML standards, whilst also clarifying how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime works. UK law firms continue to be at the forefront of the fight against money laundering and terrorist financing.
In this webinar, Lindsay Taylor from Compliance Office and Nick Henderson from VinciWorks gave a thorough overview of the latest in AML compliance and what’s changing.
The webinar covered:
The latest amendments to the LSAG guidance and what they mean
An overview of MLRs and what’s changing
Lessons learnt from previous AML fines
How recent sanctions on Russia affect client onboarding and ongoing monitoring
Answering attendee questions – send your question in via the registration form
Law firms, accountancy firms and financial corporations are required to conduct risk assessments, client due diligence (CDD) and ongoing monitoring of their clients. The precise processes for CDD and risk assessments are often complex and vary greatly, depending on industry and jurisdiction. Organisations often struggle to implement systems which adequately incorporate all the interconnected requirements of these two vital AML components.
VinciWorks’ AML client onboarding solution can be used to enhance both the risk assessment and document collection aspects of client onboarding. As specific risk factors differ, Omnitrack offers unique workflows built for several industries based on extensive research into industry best practice and regulator guidance.
People can be marginalised for many different reasons. This is often because they have a particular characteristic and are oppressed because of it. Racism, homophobia, transphobia, religious hatred, sexism, misogyny, ageism, and ableism are all forms of oppression which can marginalise someone.
Allyship is a process of building relationships with marginalised people and standing in solidarity with them. Allyship takes work. It requires active efforts to create trust, be consistent, and be accountable.
Anti-money laundering rules require trust registration by 1 September
Around a million trusts have not yet been registered with HMRC ahead of the 1 September 2022 deadline, according to official figures. The Trustee Registration Service began registering trusts in 2017, but has only registered just over 200,000 despite over 61,000 being added in the first six months of this year.
The ubiquity of trusts for tax and estate planning means many people may not realise they have a trust, or that they are required to register it with the TRS. Initially, registration was only required if the trust was liable to pay UK tax, such as income tax, capital gains tax or inheritance tax.
An environmental sustainability policy helps organisations clarify their commitment to managing its environmental impact. It can also serve as a valuable component of your ESG toolbox.
How to write an environmental policy template
An organisation should first carry out an environmental assessment to identify the main environmental issues relevant to their business and write the policy based on that. They should then clarify their objectives with regard to reducing the way they manage the environmental effects of their operations. The policy should include information about the organisation’s operations, a statement of commitment with regard to environmental goals, the organisation’s expectations with regard to environmental issues when working with suppliers and contractors, a statement of intention to comply with local regulations, a statement regarding environmental training in your organisation, information about how your organisation monitors its progress in this area.
An environmental sustainability policy can help provide a vision for employees to understand their roles and responsibilities. It can also help improve company decisions, reduce costs, and improve efficiency across the organisation.
Additionally, having such a policy can help improve relationships with customers and suppliers who want to see a commitment to sustainability.
Having an environmental sustainability policy is a valuable way for a company to clarify its commitment to managing its environmental impact. It can also serve as a valuable component of your ESG toolbox.
Part 6: Upcoming changes to the UK’s anti-money laundering regime
In July 2021, HM Treasury launched a new AML consultation entitled ‘Amendments to the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017’. This consultation outlined ways in which the government intended to amend the UK’s money laundering regulations (MLRs) with several time-sensitive updates. The planned updates are required to ensure that the UK continues to meet international AML standards, whilst also clarifying how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime works.
When a new user logs in for the first time they will be directed to an account activation page instead of the standard login page. Clicking the ‘Activate my account’ button will trigger an email to the user’s inbox and they can set a password from there.
Improved warning messages on the form builder
The form builder now has a clear warning message to users about which fields are being used in conditional logic. The warning message will appear when a user tries to delete a field that’s being used in conditional logic.
Part 5: Upcoming changes to the UK’s anti-money laundering regime
In July 2021, HM Treasury launched a new AML consultation entitled ‘Amendments to the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017’. This consultation outlined ways in which the government intended to amend the UK’s money laundering regulations (MLRs) with several time-sensitive updates. The planned updates are required to ensure that the UK continues to meet international AML standards, whilst also clarifying how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime works.
