Risk Update

Law Firm AML Updates — Upcoming Webinars (in the UK), Emerging Pot(ential) Challenges (in the US)

Posted Dan Bressler

For those not off this President’s Day, or other otherwise interested in law firm anti-money laundering, here are two events and an article of interest:

SRA Webinar: “AML officers: what they need to know” (February 23) —

  • “Everyone in a law firm has a responsibility to keep the proceeds of crime out of circulation. Some, however, have a greater responsibility than others. This free webinar will look at what it means to be a Money Laundering Compliance or Reporting Officer – key roles in the fight against financial crime.”
  • “Join us to learn more about:
    • what our thematic review and visits to firms found
    • the practical aspects of both roles
    • what guidance is available for both new and experienced AML officers.
  • You can send us questions when you book your place, or you can ask them during the webinar.
  • Speakers: Ross Gillson, AML Regulatory Manager, SRA, Susannah Eaton, AML Investigation Officer, SRA
  • Registration Link

“Legal Eye webinar: AML update 2022” (March 10) —

  • “The first Legal Eye webinar of 2022 will talk all things Anti-Money Laundering (AML), from independent audits to the challenging roles of MLCO and MLRO.”
  • “AML processes within the legal sector are under more scrutiny from regulators than ever before. It is imperative that law firms understand the role that they play; from the latest requirement for independent audits under Reg 21 to the key roles of a firms’ MLCO and MLRO and the challenges of these roles.”
  • “In this AML update, Legal Eye will discuss:
    • Commentary from the recent SRA Thematic Report on the roles of the MLCO and MLRO
    • What they are finding in their Independent AML Audits of Firms
    • Client & Matter Risk Assessment
    • Regulatory compliance around Data Protection and a mention on S43 Orders”
  • “Join in to gain some valuable insight on some of the current topics in the industry and enjoy some practical working examples.”
  • Registration Link

“Pot Attys Org. Enters ABA Debate On Money Laundering Rules” —

  • “The proposed changes would broadly extend lawyers’ due diligence obligations to be more proactive in verifying the legality of clients’ activities and could require them to withdraw representation if they become aware of unlawful money laundering.”
  • “‘We fear that the unintended consequences of the proposed comments will force states that have implemented adult-use and medical cannabis regulatory regimes to decline to adopt this guidance, as it discourages or denies legal services to those in the state-legal adult and medical cannabis industry,’ INCBA’s [International Cannabis Bar Association] comment said.”
  • “According to INCBA’s comment, the ABA’s language does not take into account emergent industries that exist in a legal gray area — such as cryptocurrencies and nonfungible tokens, or NFTs — and does not acknowledge the conflict between federal and state cannabis laws.”
  • “‘The proposed language prohibits lawyers from representing cannabis-industry market participants — and could even create barriers for attorneys who represent state and local governments that license operators, or that accept fees or tax payments from those operators,’ the INCBA comment said.”
  • “The association warned that adoption of the proposed language would force state bars to either reject it or accept it in whole or with caveats. Any outcome would make it difficult for attorneys to take on cannabis clients and would further exacerbate differences between states’ ethical standards with respect to cannabis law, the INCBA comment said.”