Money laundering and terrorist financing firm-wide risk assessment—law firms
Money laundering and terrorist financing firm-wide risk assessment—law firms

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

  • Money laundering and terrorist financing firm-wide risk assessment—law firms

This Precedent 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.

    1. 1

      Introduction

      1. 1.1

        We have performed a firm-wide assessment of the areas where we are most at risk of involvement in money laundering and/or terrorist financing. This document records the risks we have assessed and conclusions we have reached. The person responsible for this risk assessment is [insert name or role].

      1. 1.2

        [Insert overview of your firm, including its key features:

        1. 1.2.1

          number of staff and composition of staff base, staff turnover and any other relevant employee metrics;

        1. 1.2.2

          description of practice areas and their relative size/significance to the business;

        1. 1.2.3

          client types;

        1. 1.2.4

          length/depth of client relationships/stability of the client base;

        1. 1.2.5

          location of the firm and any international exposure.]

      1. 1.3

        Our assessment included consideration of:

        1. 1.3.1

          the profile and demographic of our client base;

        1. 1.3.2

          the geographical areas we operate in;

        1. 1.3.3

          the sectors we operate in;

        1. 1.3.4

          the [services AND/OR products] we offer;

        1. 1.3.5

          the type of transactions we are involved in, including delivery channels;

        1. 1.3.6

          existing and future business partnerships and opportunities;

        1. 1.3.7

          our internal or operational risks.

    1. 2

      Internal and external sources of information in relation to risk

      1. 2.1

        We have identified the following internal and external sources of information in relation to risk:

        InternalExternal
        [MLR 2017

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