Money Laundering Regulations 2017—independent audit function role and responsibilities—law firms
Money Laundering Regulations 2017—independent audit function role and responsibilities—law firms

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

  • Money Laundering Regulations 2017—independent audit function role and responsibilities—law firms

STOP PRESS: Draft Legal Sector Affinity Group (LSAG) AML guidance was published on 20 January 2021. It awaits approval by HM Treasury and any content may be amended before the final version is published with the Treasury's approval. This document reflects HM Treasury approved LSAG AML guidance published in 2018 and will be updated in due course.

    1. 1

      Establishment of independent audit function

      The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLR 2017) require firms subject to the regulations to establish an independent audit function where it is appropriate, having regard to the size and nature of their business. Having regard to the firm’s size, business and the outcome of the firm’s anti-money laundering (AML) risk assessment, the [board OR senior management team OR [other]] have decided to establish an independent internal audit function for [insert name of firm].

      This document sets out the purpose, scope, activities and duties of the firm’s independent audit function.

    1. 2

      Governance and reporting lines

      1. 2.1

        The independent audit function shall be led by [insert name of head of audit function], who shall report directly to the [board OR senior management team OR managing partner OR senior partner OR [other]]. Other members of the independent audit function shall report to and be supervised by [insert name of head of audit function].

      1. 2.2

        The chart in the Appendix

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