The legal industry has seen significant benefits from advancements in technology, however, as with any rapid growth, vulnerabilities have surfaced.
One area of particular concern in the sector is identity verification and anti-money laundering (AML) in the digital age. These issues have gained significant attention, with various regulatory agencies such as the Solicitors Regulation Authority enforcing strict regulations on ID and AML protocols.
The legal field is a high-stakes profession, with billions of pounds generated annually in the UK alone. To maintain standards and avoid penalties from regulatory bodies like the Solicitors Regulation Authority (SRA) and HM Land Registry (HMLR), law firms are constantly on the lookout for top-of-the-line technology.
Solicitors are required to fulfil certain criteria’s as laid out by the SRA and other regulatory bodies, so solicitors have been simplifying these processes with specific solutions or “AML Technologies”, to operate more efficiently. These solutions often refer to the automation of:
- ID Verification Checks
- Address Verification Checks
- PEPs and Sanctions Checks
- Source of Funds Checks
Why Use Automated AML Checks Solutions?
In today’s digital landscape, relying on manual systems for anti-money laundering checks (AML/KYC checks) is becoming increasingly outdated. Despite the advancements in technology, some law firms still rely on manual methods to safeguard client data, reduce risk, and maintain compliance with AML regulations. This approach, however, can be problematic.
The SRA has established a wide range of rules and requirements for firms, such as Know Your Customer (KYC) and Customer Due Diligence (CDD) processes, that can be difficult to meet with manual systems. The manual systems tend to be inefficient, prone to clerical errors, and slow to process, making them costly in the face of sophisticated fraudsters.
As regulations become more stringent, law firms that continue to use outdated systems for anti-money laundering checks may be faced with rising costs to maintain them.
However, cutting corners can be a tempting solution, but non-compliance with the SRA’s regulations can result in hefty fines for firms across the country.
What is the Best AML Checks solution for Solicitors in the UK?
For solicitors and law firms in the UK looking for solutions with the highest level of compliance, Verify 365 provides an affordable and easy-to-use AML checks solution.
To learn more about Verify 365 technology, what we offer and how we can help you, visit our website and find out.