AML and data protection—law firms

The following Practice Compliance practice note provides comprehensive and up to date legal information covering:

  • AML and data protection—law firms
  • The data protection regime
  • How is data protection regulated?
  • Who is the regulator?
  • What is personal data?
  • Lawful ground for processing
  • Processing personal data for non-AML/CTF purposes
  • Information requirements
  • Protecting and retaining CDD data
  • More...

AML and data protection—law firms

This Practice Note reflects draft Legal Sector Affinity Group (LSAG) AML guidance, published on 20 January 2021. It awaits HM Treasury approval. Note that any content may be amended before the final version is published with the Treasury's approval.

This document reflects the UK GDPR regime. References and links to the GDPR refer to the UK GDPR (Retained Regulation (EU) 2016/679) unless expressly stated otherwise.

The provisions of UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018 (DPA 2018) create some challenges under the anti-money laundering (AML) and counter-terrorist financing (CTF) regime, including:

  1. complying with information requirements

  2. the requirement not to use personal data collected for AML/CTF reasons for other purposes

  3. protecting the client data you collect during the client due diligence (CDD) process

  4. sharing client data with law enforcement agencies, eg by making suspicious activity reports (SARs) or responding to enquiries, and

  5. data subject access requests (DSARs) and tipping-off offences

This Practice Note begins with a brief overview of the data protection regime and its principles and then explains these challenges, providing practical guidance on how to approach them. It reflects the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, which came into force on 26 June 2017.

The data protection regime

To comply with the data protection

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