Don’t forget the 5th EU Anti-Money Laundering Directive comes into force in the UK on 10th January 2020 thereby building upon existing legislation with the purpose of effectively tackling the growing global issue of money laundering and terrorist financing.
To clarify, our country currently has its own rules around anti-money laundering, these being the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 and Proceeds of Crime Act 2002. The need for strengthened legislation has arisen in order to align better with the recommendations of the Financial Action Task Force.
One such recommendation by this intergovernmental organisation (Financial Action Task Force) of particular note is undertaking customer due diligence by electronic identification procedures as this type of validation checking is more reliable, secure and quick.
From 10th January, law firms are obliged to apply careful due diligence during client onboarding which means replacing manual, paper-based verification with electronic alternatives. That’s where Quill comes in…
You’ll be relieved to learn that our Interactive legal accounts and case management software already contains an in-built optional AML package. By entering minimum mandatory data, our AML tool allows you to perform sound AML and credit checks as added protection against financial crime.
There’s no upfront cost; just a nominal fee based on search volume charged monthly in arrears.
PS. Note the 5th AMLD legislation hasn’t been passed through parliament yet or the fine detail released. This is early guidance only. We’ll provide explicit advice when the legislation has been finalised.
PPS. On a related note, are you aware that some banks will no longer accept business banking customers’ self-printed cheques from the same date, 10th January? This is another anti-fraud measure specifically regarding cheque transactions. Watch this space for future announcements.