Saying ‘we know you’re busy’ to a lawyer or a MLRO can be an irritating way to start a conversation with a lawyer or an MLRO (sorry). 

But we thought it might be helpful to not only acknowledge how busy you are, but give you something that might help: a summary of the key takeaways from our latest white paper ‘The ultimate guide to KYB for law firms.’ 

That way you can get a taste for the expert strategies before downloading your free copy and reading the whole thing at your leisure. 

By way of an introduction, the white paper takes the dread out of KYB compliance, with advice on how firms can consistently identify ultimate beneficial owners (UBOs), stay on top of compliance, and effectively leverage best-in-class technology to streamline KYB processes while supporting your best-in-class compliance procedures and policies. 

How to consistently identify ultimate beneficial owners (UBOs) 

One of the key components of KYB checks for law firms, and often the most complex. Our guide outlines a multi-step approach to unravelling layers of corporate complexity to consistently identify these persons. Download the full guide to learn about: 

• How to build understanding: a solid grasp of FATF's UBO definition, alongside training staff to recognise UBOs in complex structures.
• How to analyse corporate structures: advice for training people to dissect networks of subsidiaries, trusts, and partnerships.
• Addressing incomplete information: use cross-referencing, enhanced due diligence, interviews, and advanced legal research tools to verify ownership details.
• Regulatory adherence: stay updated with national standards like the PSC register and 5AMLD.
• Risk assessments: conduct thorough risk analysis for accurate KYB compliance.
• Automation of KYB processes: implement automated solutions like Legl KYB for efficient and accurate data verification and compliance.

How to stay on top of compliance

Irascible regulators, fierce geo-political headwinds, and rapidly evolving regulatory frameworks provide the context for new business client onboarding. In these evolving conditions, monitoring and maintaining compliance can feel like traversing a mountain. To help, our guide explores some of the ways firms can proactively manage and monitor compliance by:

• Advocating for regular training: hosting sessions on regulatory changes, AI, and ESG compliance.
• Establishing a compliance task force: creating a group to monitor and assess regulatory changes.
• Promoting board-level discussions: Emphasising strategic compliance oversight at the board level.
• Championing compliance solutions: advocating for effective compliance software and tools.
• Initiating proactive risk alerts: ensuring KYB solutions provide continuous monitoring with proactive alerts.
• Utilising external resources: seeking specialised compliance advice or training externally.

How to streamlining digital onboarding

It may seem counter-intuitive to talk about digital onboarding in a guide to KYB, but there's a solid reason. If your tech stack isn’t optimised — if you use multiple KYB solutions, have a fragmented tech stack, and limited integrations with your PCMS and CMS — your firm will struggle with KYB compliance. In this section of the guide, we discuss the significance of evaluating and refining your firm’s digital onboarding processes:

• The integration and efficiency of your firm’s existing KYB, KYC, and AML solutions.
• Avoiding ‘tech fragmentation.’.
• The criteria for selecting effective KYB solutions.
• The importance of cost-effectiveness, scalability, and simplicity when choosing KYB solutions.

How to leverage technology effectively 

Of course we were always going to come to technology. The power of technology to improve the efficiency of KYB is undeniable. As Jane Pritchard, CPO at Legl says, 

“Compliance is not a habit to be learnt when all the cues of urgency and weak solutions drive lawyers to fall off the wagon — it can be an enjoyable consequence of a seamless smart process that requires monitoring, not policing.”

That’s why, in this section of the guide, we take a more detailed look at how smart KYB solutions, like Legl, help firms continue to meet their regulatory requirements.. 

• Comprehensive data analysis and entity-level visibility.
• Seamless integrations with existing systems.
• Automated alerts, continuous monitoring, and adaptive risk assessments.
• Streamlined and efficient data gathering.

Conclusion

Of course, we were always going to end our summary with an invitation to download the full guide — but it’s more than just spiel. The full (and free) white paper offers invaluable insights and practical steps aimed at helping your firms navigate the intricacies of KYB compliance. 

It may seem oddly self-serving to quote our CPO again, but we couldn’t say it any better: 

“I am really excited about the greenfield moment for compliance — not just because it can put law firms in the driving seat but because it can transform fear and reactive practice into smart and proactive practice which is a differentiator for law firms with their clients. Instead of being embarrassed to pursue deep KYB & KYC enquiries — complete them so effortlessly that clients appreciate the diligence and security in their onboarding.” 

If you’re ready to turn KYB into your firm’s strategic advantage, download "The ultimate guide to KYB compliance for law firms".