If you missed our webinar with Kayleigh Smale and Jane Pritchard answering FAQs about how to get corporate client due diligence right, check our our key takeaways, below, or watch the full recording in your own time:

• Leverage technology: Technology can make data work harder so you and your analysts won’t have to.
• Confidence matters: Don’t apologise (no really), you’re doing your job and doing it well and negativity has a tendency to catch on.
• Streamline processes: Take a look at the CDD processes that work for your firm, and then use technology to centralise, automate, and monitor.
• Client selection: When it comes to client pushback at the due diligence stage, ask yourself whether that’s a client you really want or need to be working with.
• Proportionality is key: When looking at complex corporate structures — look for information that satisfies your risk appetite and be clear on when enough is enough.

You may have seen the recent amendment to the Money Laundering Regulations in relation to the treatment of Politically Exposed Persons (PEPs). This amendment can be found in the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 and came into force on 10th January 2024.

The new regulations state that when dealing with "domestic PEPs", firms must treat them as lower risk than non-domestic PEPs. So you must apply a “lower level” of enhanced due diligence (EDD) to domestic PEPs compared to non-domestic PEPs, unless “other enhanced risk factors are present.” A domestic PEP is defined as someone who is entrusted with prominent public functions by the “UK”.

Read more about how Legl helps firms comply with the UK sanctions regime, below.

The Financial Action Task Force (FATF) recently concluded its latest plenary session and updated its list of jurisdictions under increased monitoring.

New additions to the list include Kenya and Namibia, while Barbados, Gibraltar, Uganda, and the United Arab Emirates have been removed.

The Money Laundering Regulations underwent amendments earlier this year, altering the definition of a High-Risk Third Country (HRTC). An HRTC now refers to a country listed by FATF in its compilation of ‘High-Risk Jurisdictions subject to a call for action’ and ‘Jurisdictions under increased monitoring.’

When you complete your KYB and KYC checks's through Legl we automatically screen for high-risk third countries. For a complete view of your practice risk for clients and counter parties, complete a simple bulk upload through Legl and dive into the MLRO dashboard to review and consolidate your high-risk profile, perfectly tailored for SRA audits.

Our new Monitoring Dashboard stands as a robust solution, offering a comprehensive approach to risk management. It not only empowers decentralised teams with dynamic control for reviewers' alerts but also facilitates swift responses to potential risks. This dashboard enables real-time monitoring and customisable alerts, allowing teams to efficiently address emerging threats while maintaining operational agility.

Furthermore, in response to invaluable client feedback, we've tailored our system to accommodate diverse use cases and organisational structures, ensuring seamless integration and optimal functionality for all users.

Conscious Conversation (Live) with John Hyde

On 27 March, John Hyde, Deputy News Editor, will be chatting with Managing Partner, David Gilroy, about topics such as the Axiom Ince debacle, the Horizon IT scandal, and doubtless, the SRA, along with many other current topics. If you’re in Bristol for the event, don't forget to say hello to Legl’s AML expert, Kayleigh Smale.

Future Lawyer Week

From 16 to 18 April, considering attending Future Lawyer Week? Apart from a stellar lineup of thought-leadership and networking, Legl will be showcasing our Smart risk and AI-powered analyst tools. There may also be some pretty incredible merch!

Legl's Summer Product Innovation Group 🐷

Block out your diary for Thursday 20 June! If you want to be part of our growing community for innovation and collaboration, sign-up to attend Legl’s Summer Product Innovation Group (The PIG), and see why this might just be the best-kept secret in the law-tech events calendar.