The importance of establishing client ID and source of funds.
Solicitors must be as sure as possible that any client they assist is in fact the person they claim to be.
Proper identification of clients is a fundamental requirement for solicitors.
In certain types of legal work, especially Conveyancing, money is received and transferred. Anti-Money Laundering (‘AML’) rules require solicitors to identify the “source of funds” they handle. Sometimes, we have to go further and even look into a person’s sources of wealth.
Money Laundering is a blight on society.
It is not the “victimless crime” that some people like to think it is.
Money Laundering is associated with evil practices such as drug dealing, human trafficking and terrorist financing.
Significant penalties await solicitors us if they fail to comply with their AML duties – including substantial fines and jail sentences.
We have to take our duties seriously, both from a moral and a legal perspective.
While we have obtained ID and “funds” information from clients in various ways in the past, one common example has been by clients coming into our reception, bringing their personal documents to be copied, certified and filed for fee earners by our reception team.
The problem of how best to “onboard” customers and clients exists across many sectors of business, not just Legal Services.
The main issues for law firms and their clients could be summarised as (a) securely proving who you are and (b) securely proving the source of funds / wealth behind your transaction.
We are upgrading our processes as to how we complete client ID and verification.
From February 2024, we will be using Amiqus for ID and source of funds / wealth checks.
Amiqus makes it possible for clients to provide their ID digitally – and from the comfort of their own home – and we hope it will significantly speed up the process for our clients, as well as making it more secure.
Amiqus is a strategic partner to the Law Society of Scotland.
Because of this, many Scottish law firms are already users of the Amiqus system. See, for example, this case study.
Founded in Edinburgh in July 2015, Amiqus’ product is an encrypted online tool for AML and Source of Funds checks. It aims to be huge time-saver for clients and solicitors alike.
Clients can sort out document validation, sanctions screenings and AML checks, all via the convenience of their personal device.
If you are a client who is not fully comfortable with a move to a more tech-based approach, we can still go through the process by meeting you in person and guiding you through the checks using your own device or ours, if you prefer.
Amiqus ID automatically records internal decision-making within its centralised platform, providing a clear digital audit trail.
Please get in touch, if you have any questions
This is a significant change to the way we carry out our onboarding processes at Grigor & Young but we firmly believe it will be an improvement for clients and for us. Above all, we want to do things the right way and have practices and procedures in place which make us obviously and securely compliant with our regulated obligations.
We want to be applying best practice so as to fulfil our legal and moral obligations to the highest possible standard.
If you have any questions or concerns at all about the onboarding process described in this article, please contact Peter Brash on 01343 544077 or you can send us a Free Online Enquiry via this website and he will get your query that way.
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