Law firms must comply with the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. However, balancing anti-money laundering (AML) requirements with client service isn’t easy. 

Clients might grow frustrated with your requests for documents, especially if they don’t understand why you’re asking for them. Therefore, the task is to reframe AML checks as part of your service: a sign that your firm protects clients and acts with integrity. 

This blog shows how to explain AML requirements clearly, so clients understand not just what you need, but why.

P.S. If you work in compliance, we’d love your input. We’re running a short survey on the state of compliance in 2025 – your insights will help us build a clearer picture of the challenges firms face this year.

How to explain AML requirements to your clients

Explaining AML requirements to clients is often the hardest part of compliance. Here are some ways that you (or the fee-earners you work with) can make the conversation smoother and more effective.

“Why do you need all this information?”

By law, we must check who our clients are before we start working together or handle their money. That means confirming identity, understanding the purpose of the matter, and, where relevant, identifying beneficial owners. These checks aren’t unique to law firms – banks and other financial institutions must do the same.

“Why are you asking about my source of funds?”

We’re required by law to understand where your money is coming from. This isn’t about judging your finances. Rather, it’s about preventing money laundering and protecting everyone involved. It also helps us ensure the transaction is legitimate and transparent.

“Is this going to delay my case?”

Usually not. With digital tools like Legl, most checks only take a few hours, compared to days in the past. The only time it may take longer is if extra steps are required, but even then we work to complete it as quickly as possible.

“What happens if I don’t provide the documents?”

Unfortunately, we can’t start or continue work without the required information. The law prohibits us from doing so until the checks are complete. What’s more, completing these checks shows that our solicitors (and our firm more generally) acts with integrity. It’s an important part of our processes that shows we take our responsibilities seriously. 

“Can’t you just check this information yourself?”

Some details, like your ID, need to come directly from you. While we use digital tools to make checks faster, certain documents must be verified at the source. Providing them upfront helps us avoid delays later on.

“I’ve worked with you before – why are you asking again?”

We have to keep information up to date and carry out ongoing monitoring. If your circumstances change – for example, you have a new address, a change of business ownership, or links to higher-risk jurisdictions – we may need to carry out additional checks.

“Why are these checks stricter than last time?”

AML rules are constantly evolving to keep up with new threats and risks. As regulations tighten, we update our processes to stay compliant. This might mean asking for additional information, even from long-standing clients.

“I’m the director of a company – do you need personal documents too?”

Yes. If we’re working with a business, we also need to verify key individuals behind it, such as directors and beneficial owners. This is a legal requirement designed to prevent misuse of corporate structures.

“Will my information be kept confidential?”

Yes. Your data is protected under law and by our AML policies. The only exception is if we suspect criminal activity. In that case, we may be required to make a confidential report to the National Crime Agency. The law prevents us from informing you if this happens.

“How long will you keep my information?”

We’ll keep your documents only for as long as required by law – typically five years after your matter ends. After that, they’re securely deleted.

6 tips for communicating AML requirements to clients

Handled well, AML checks can build client confidence rather than resistance. Here are six tips to keep the process smooth and professional.

1. Manage expectations early: Explain upfront that checks are a legal requirement before work starts. Acknowledge it may feel inconvenient, but stress that you’ll make it as straightforward as possible.
   
   
2. Use plain language: Swap jargon for clear explanations. For example, instead of “source of funds verification,” say “We need to know where the money is coming from, such as savings, a gift, or a property sale.”
   
   
3. Give examples of acceptable evidence: Provide a short list of acceptable documents – bank statements, payslips, completion statements – ideally in a one-page guide or PDF.
   
   
4. Pre-empt common issues: Flag in advance what’s needed if money comes from a joint account, overseas account, or third party, to avoid last-minute delays.
   
   
5. Frame it as protection: Reassure clients that checks also protect them from fraud and financial crime.
   
   
6. Provide a direct contact: Give clients a named person who can answer questions, reducing frustration and delays.

Final thoughts

AML compliance doesn’t have to be a barrier. With clear communication, you can reassure clients that checks are part of a professional, secure service.

Of course, communication is just one piece of the puzzle. You also need to use the right tools.

Legl’s KYC and AML platform automates checks, simplifies document collection, and provides the audit trail you need. 

Meet your AML obligations without slowing down your clients’ matters. Book a demo to see how Legl works.