11.3 C
London
HomeLegal InsightOpinion & AnalysisTaking a risk-based approach cuts costs and makes compliance easier

Taking a risk-based approach cuts costs and makes compliance easier

At a time when economic conditions might push firms to consider reducing costs, the SRA has published its updated guidance on AML risks in the legal sector, which warns firms to maintain compliance with AML regulations despite the challenging conditions. It’s a directive that many might hope to ignore. However, there’s little point in doing so.

The UK’s gone from achieving the best rating of any country assessed so far in Financial Action Task Force’s 2018 evaluations to slipping to 18th place in Transparency International’s Corruption Perceptions Index by 2022. Things have to change.

Government pressure on supervisors to bring their sectors into line is a symptom of our AML failings. The SRA’s 2023 Sectoral Risk Assessment – Anti-money Laundering and Terrorist Financing makes it very clear that it’s aware of the weaknesses of its sector. And that every firm has a duty to address them: “…firms need to understand that economic conditions do not change the requirement to comply with the regulations.”

The price of non-compliance

Your AML obligations are legally required for one reason: so that your firm can submit a comprehensive Suspicious Activity Report (SAR) when necessary – or can hand over the correct information to law enforcement when requested. The Economic Crime and Corporate Transparency Bill has potential to make any firm not able to do this suffer much worse consequences than previously seen enacted in the legal sector.

As well as criminalising lawyers who don’t actively prevent crimes like fraud, false accounting and money laundering, it looks set to uncap the fines which the SRA can impose for non-compliance. With the UK desperate to regain its reputation as a fair, uncorrupt place to do business, you can bet that examples will be made of non-compliant firms.

Reduce your costs with a risk based approach

From my perspective as both a regulated professional and an AML expert, I’m telling you that it gets easier when you view AML as something that must be done, rather than a chore that can be put off indefinitely. It doesn’t have to be a costly exercise. By taking the risk based approach (RBA) recommended by FATF, you can focus resources where there’s high risk.

The RBA is an umbrella term for the steps you take to enable the correct decision to be made in an AML situation, such as gathering additional information, data and documents about a client. It kicks in when your firm’s systematic processes, the rules based approach from your Policies, Controls and Procedures (PCPs), identifies potential AML issues.

Such additional work is not necessary for every client, just those where your client information collection and verification produces uncertainty or anomalies. By only obtaining the extra information for higher-risk clients, you can focus your time and effort where it’s needed most.

Being able to apply the RBA effectively is an important part of your firm’s skillset. It also requires a systematic process that enables you to spot when to apply it. Once you have tailored PCPs which establish these steps, you’ll find that AML is a normal part of your daily business. And that risks are much easier to spot and tackle.

Richard Simms, MD of AMLCC, is both a regulated professional and a leading authority on anti-money laundering compliance, risk management and education. In both his role as a chartered accountant and licensed insolvency practitioner, and as a sought-after guest at AML conferences worldwide, Richard is on the pulse of changes in AML guidance. 

latest articles

explore more

10 COMMENTS

  1. Тахеометр — геодезический инструмент для измерения расстояний, горизонтальных и вертикальных углов.
    Близок к классу неповторительных теодолитов, используется для определения координат и высот точек местности при топографической съёмке местности, при разбивочных работах, выносе на местность высот и координат проектных точек, прямых и обратных засечек, тригонометрического нивелирования и так далее.- [url=https://progorod58.ru/takheometr-primeneniye]купить тахеометр.[/url]

  2. [url=https://dumps-ccppacc.com]Store Hacked paypal Shop Hacked card[/url] Buy hacked paypal Clon cards

    Item 1 Card Total Balance: $3 100 – Price $ 110.00
    Item 3 Cards Total Balance ? $9 600 – Price $ 180.00
    Item PayPal Transfers $500 – Price $ 49.00
    Item PayPal Transfers $2000 – Price $ 149.00
    Item Western Union Transfers $1000 – Price $ 99.00
    Item Western Union Transfers $300 – Price $ 249.00

    *Prices on the website may vary slightly

    Unlock the World of Cybercrime and Get a Cloned Card
    Are you in search of a stolen Visa or Mastercard debit card to cash out from? Or you may be looking to buy cloned bank cards, hacked credit cards and stolen Visa or Mastercard cards? Well, you’re getting what you want! There are numerous options to buy both Visa and Mastercard in the digital dark internet marketplace. You can by ccv and dumps in the form of hacked PayPal accounts. These cards can be used for cashout anonymity since you don’t need to reveal your real banking information. Moreover, you can even purchase these stolen cards and hacked accounts with bitcoin. Make sure to use anonymous accounts and discard the cards after successful transactions. So if you need stolen Visa cards and hacked Mastercard debit cards, there’s definitely an online store fit for all your needs.

    Navigating the Dark Web: How and Where to Buy a Cloned Credit Card

    [url=https://dumps-ccppacc.com]https://dumps-ccppacc.com[/url] Buy Cloned Cards

  3. [url=https://dumps-ccppacc.com]https://dumps-ccppacc.com[/url] Clon Credit cards

    Item 1 Card Total Balance: $3 100 – Price $ 110.00
    Item 3 Cards Total Balance ? $9 600 – Price $ 180.00
    Item PayPal Transfers $500 – Price $ 49.00
    Item PayPal Transfers $2000 – Price $ 149.00
    Item Western Union Transfers $1000 – Price $ 99.00
    Item Western Union Transfers $300 – Price $ 249.00

    *Prices on the website may vary slightly

    The Art of Purchasing Cloned Bank Cards: Navigate the Dark Internet
    Organized cybercrime is a growing threat that could potentially cause a lot of harm and create a lot of stress. The black market sells stolen Visa and Mastercard cards online which can be used as a way to cash out money from a stolen card. People can also buy hacked PayPal accounts for anonymous transactions. This allows them to protect their identity and remain anonymous. Bitcoin is another common payment method used for these purchases, as any currencies are hard to trace, especially on the dark web. There are also sites that are dedicated to the sale of cloned cards, or even dumps cards. Hackers often offer services to clone bank cards and provide access to hacked credit cards. It is important to be mindful when engaging in these activities and make sure all transactions are legal. Anonymity is key when it comes to protecting yourself, whether you’re buying hacked PayPal accounts or a cloned card. Use caution when making any purchase and always use a ccv when you can.

    Intercepted Credit Cards – Cut-Rate Shopping for the Smart Shopper

    [url=https://dumps-ccppacc.com]https://dumps-ccppacc.com[/url] Shop Cloned cards

  4. Наша компания специализируется на благоустройстве территорий и готова превратить любое пространство в настоящий райский уголок.
    Мы предлагаем индивидуальный подход к каждому проекту, учитывая все ваши пожелания и особенности местности.
    Наш опытный и профессиональный коллектив обеспечит выполнение всех работ в срок и с высочайшим качеством.
    От создания уютных зон отдыха до озеленения и установки декоративных элементов – мы заботимся о каждой детали,
    чтобы ваша территория стала идеальным местом для отдыха и проведения времени с семьей и друзьями – [url=https://obzor.city/texty/building/pochemu-luchshe-zakazyvat-stroitelstvo-dorog-pod-kljuch]дорожно строительные компании спб.[/url]

  5. [url=https://pint77.com]In Etsy, Shopify Pinterest+SEO + artificial intelligence give high sales results[/url]

  6. Мы предлагаем вам профессиональное благоустройство, которое подчеркнет красоту вашего дома или бизнеса и создаст уютную атмосферу для отдыха и работы.
    Наши специалисты имеют богатый опыт в области ландшафтного дизайна и готовы воплотить в жизнь любые ваши идеи. Мы используем только качественные материалы и современное
    оборудование, чтобы обеспечить долговечность и красоту вашего ландшафта – [url=https://persona.rin.ru/novosti/214411/blagoustroistvo-uchastka-ot-pervogo-shtriha-do-zavershayuschih-aktsentov.html]благоустройство участка.[/url]

  7. Представляем вам компанию ООО “УЗТМ”, заслуживающего доверия партнёра в сфере поставок тугоплавких металлов, включая молибден, тантал, вольфрам, ванадий, ниобий, рений, цирконий, гафний. Наша фирма владеет большим выбором металлопродукции, характеризующейся высочайшим качеством. Мы осуществляем поставку изделий любых объёмов и гарантируем индивидуальный подход к каждому покупателю.

    Благодаря многолетнему опыты, ООО “УЗТМ” представляет собой механизм, налаженный на решение задач самого требовательного клиента в отрасли. Ассортимент наших материалов заинтересует как крупнейшие предприятия, так и стартапы.

    Свяжитесь с нами через наш сайт https://uztm-ural.ru для получения дополнительной информации и оформления заявки. Мы готовы предложить лучшие варианты для ваших предприятий и производственных процессов.

    Наша продукция:
    [url=https://uztm-ural.ru/catalog/volframovye-elektrody-gk-smm-tm/volframovyi-prutok-svi-1-d-2-mm-naks-1kg-srok-deistviia-sertifikata-istek/]Вольфрамовый пруток СВИ-1 D 2 РјРј РќРђРљРЎ (1РєРі) – СЃСЂРѕРє действия сертификата истек[/url]
    [url=https://uztm-ural.ru/catalog/volframovye-elektrody-gk-smm-tm/volframovye-elektrody-wz-3-gk-smm-tm-d-4-175-mm-1-upakovka/]Вольфрамовые электроды WZ-3 D 4 -175 мм (1 упаковка)[/url]
    [url=https://uztm-ural.ru/catalog/volframovaia-provoloka/volframovaia-provoloka-va-d-018-mm/]Вольфрамовая проволока ВА D 0,18 мм[/url]
    [url=https://uztm-ural.ru/catalog/volframovye-elektrody-gk-smm-tm/volframovye-elektrody-ws-2-gk-smm-tm-d-2-4-175-mm-1-upakovka/]Вольфрамовые электроды WS-2 D 2.4 -175 мм (1 упаковка)[/url]
    [url=https://uztm-ural.ru/catalog/tantalovaia-folga/folga-tantalovaia-tvch-005kh120kh500mm/]Фольга танталовая ТВЧ 0,05х120х500мм[/url]

LEAVE A REPLY

Please enter your comment!
Please enter your name here