AML Thematic Review of Policies, Controls & Procedures

The Society will be launching its AML Thematic Review of Policies, Controls & Procedures (PCPs) this month, June 2022.

To fulfil our responsibilities as the AML supervisor for Scottish solicitors, we deploy a number of tools and resources - for example AML inspections, selected file audits, MLRO discussions and the requirement to submit the AML Certificate. Another such tool are sample-based thematic reviews. Used by other AML supervisors such as the Solicitors Regulatory Authority and the Financial Conduct Authority, sample-based thematic reviews are a compulsory exercise which will help us to identify and assess specific current and emerging AML risks within the regulated population.

They allow us to:

• Work collaboratively with our supervised population to gain a better, more detailed understanding of the products and services which may be exposed to use and abuse for illicit purposes
• Gain a greater insight into how the profession complies with obligations under the Money Laundering Regulations and Legal Sector Affinity Guidance.
• Use the data gathered to provide further information and support to members to mitigate the AML risks inherent in this type of work.

What does this mean for our members?

We are keen to obtain further oversight regarding the standard of AML Policies, Controls and Procedures across the sector. In order to do so, we will shortly be launching a sample-based thematic review of PCP’s across a number of practices. We will request that selected practices PCPs be sent to us via password protected email.

• This will allow us to complete a review of these, gaining insight into how the profession complies with obligations under the Money Laundering Regulations and Legal Sector Affinity Guidance. This will, in turn, help us provide supplementary guidance and support to aid practices in this critical area of AML compliance.

Who, what, when and how?

We will shortly be selecting a number of practices to take part in this initiative and will contact the practice MLROs directly.

The review will take part in three stages:

• Stage 1 – The request for documents will be sent by our AML team, giving a submission date of 4 weeks from the date of the email.
• Stage 2 – Our AML team will analyse these documents and collate findings
• Stage 3 – A report will be generated highlighting our overall anonymised findings, along with key areas for improvement. It will also provide practical help and support for firms to aid compliance, as set against Money Laundering Regulations and Legal Sector Affinity Guidance requirements. This anonymous report will be sent directly to those who have participated as well as being published on our website.

We look forward to working with you as your supervisor – your cooperation and participation is required to minimise the AML risks to you, your business, your clients and to the legal profession as a whole.

Members can contact Jenni Rodgers or Dale Trahmsin our AML team with any queries at aml@lawscot.org.uk.