This page provides links to the key legislation and guidance documents for AML in the legal sector, as well as our templates for risk assessments at the practice unit, matter and client level.
Legal Sector Affinity Group Guidance (LSAG)
- Legal Sector Affinity Group (LSAG) Anti-Money Laundering Guidance for the UK Legal Sector (Part 1)
- Published January 2021, approved by HM Treasury July 2022, updated March 2023.
- LSAG AML Guidance Part 2a: AML Guidance for Barristers and Advocates
- Approved by HM Treasury July 2022
- LSAG AML Guidance Part 2b: AML Guidance for legal professionals providing Trust or Company Services.
- Published April 2021 and approved by HM Treasury July 2022.
- LSAG AML Guidance Part 2c: AML Guidance for legal professionals offering Notarial Services.
- Published April 2021 and approved by HM Treasury July 2022.
- LSAG Advisory Note – Preventing Money Laundering During COVID-19
- LSAG Breach Reporting Note
- LSAG Guidance Note - Remote Working, Client Interaction, associated use of AML technology and Impacts of economic instability
- Published July 2022
- Legal Sector Affinity Group (LSAG) – Advisory Notice - Chinese underground banking and funds from China
- Published March 2023
- Addendum to the LSAG 2023 guidance
- Published December 2023
Financial Action Task Force (FATF)
- The Financial Action Task Force released updated Risk Based Approach Guidance for Legal Professionals in June 2019.
- FATF Report – Money Laundering and Terrorist Financing Vulnerabilities of Legal Professionals
- FATF Report – Guidance for a Risk-Based Approach Guidance for Legal Professionals
- FATF Report – Guidance on Risk-Based Supervision
- FATF Report - Risk Based Approach guidance for the Real Estate Sector
- FATF Report - Guidance on Beneficial Ownership of Legal Persons
- FATF Report - Guidance on Misuse of Citizenship and Residency by Investment Programmes
Other
- Good practice in developing AML Policies and Procedures
- Joint Money Laundering Steering Group (JMLSG) – Guidance on Client Accounts for Banks
- Companies House PSC Discrepancy Reporting Information Apr 2022
- Source of Funds and Source of Wealth: What you need to know
- AML and Geographical Risk
- Cryptocurrencies - Risk Assessment & Source of Funds/Wealth Considerations in the context of Conveyancing Transactions
How might you or your colleagues spot fake ID documents at client take-on stage?
One way would be to compare and contrast documentation presented against those you know are definitely genuine. This may be using your own photo-card licence or passport to compare against, or helpfully the passport office, the DVLA and utility bill providers all provide information on security features, formats and layouts of their bills or issued documents on their websites.
You can find examples and useful links below:
Main energy providers (for utility bill examples – other utility providers may have similar)
Government agencies
- Passport office basic passport checks
- Passport office – new passport design
- DVLA information on driving licences
The Home Office also gives Guidance on Examining Identity Documents.
Supervisory Assessments
Annual Reports:
- Law Society of Scotland AML Annual Supervisory Report 2023
- Law Society of Scotland Risk Appetite Statement 2021
Thematic Reviews:
Client and Matter Level Risk Assessments (CMLRA)
Refreshed Sectoral AML Risk Assessment
Financial sanctions FAQ
AML subscription email service
Regulators, such as us, have been asked to highlight this service to our member practice units.
