Question 1

Are law firms subject to AML obligations?

Accepted Answer

In most major jurisdictions — yes, when providing certain "designated" services. The EU (AMLR), UK (MLRs 2017), Canada (with the long-running Federation of Law Societies litigation history), Singapore, and most FATF members already include independent legal professionals as obliged entities. Aust...

Question 2

Which legal services typically trigger AML obligations?

Accepted Answer

The "gatekeeper" services identified by FATF Recommendation 22 — buying / selling real estate; managing client money, securities or other assets; managing bank, savings or securities accounts; organising contributions for company creation, operation or management; and creation, operation or manag...

Question 3

How does legal professional privilege interact with SAR / SMR reporting?

Accepted Answer

Privileged information is generally protected from disclosure, including in SAR / SMR reports — but the boundary is narrower than many practitioners assume. Information communicated for the purpose of furthering a criminal offence (the "crime-fraud exception") is not privileged. The UK NCA, EU re...

Question 4

What screening should a law firm perform?

Accepted Answer

At minimum: identity verification of the client and any controllers / UBOs; sanctions screening of the client, UBOs, opposing parties in transactions, and any third parties to whom client funds are paid; PEP screening proportionate to risk; adverse media screening for higher-risk matters and tran...

Legal sector