UK conveyancing firms and law firms are under ever greater scrutiny to carry out rigorous Anti-Money Laundering (AML) checks, and for good reason. According to Europol, 70% of criminal enterprises now use money laundering techniques to hide their ‘ill-gotten’ gains.
In response, the SRA has massively ‘upped the ante’ in the past 12 months, ramping up desk-based AML compliance assessments, resulting in record fines. So, the question is, what can you do to ease this burden on your business while ensuring consistent AML compliance when dealing with international clients?
Enhanced AML checks for international clients
One of the main challenges for conveyancers in 2024 is knowing exactly when to carry out enhanced AML checks for international clients and how to do so effectively and efficiently.
Remember, you must complete EDD AML checks when dealing with a customer who is not physically present when carrying out ID checks (e.g. international clients), a ‘Politically Exposed Person’ (PEP) from a high-risk third country identified by the EU, or presents a higher risk of money laundering.
What are the challenges of vetting international clients?
Carrying out AML checks on international clients to the standard required by the SRA and CLC can be especially challenging, because:
- Your staff may never meet the client in person
- There may be language barriers
- Domestic checking processes, services and software may not work for clients in other countries, and
- It can be difficult to establish the Ultimate Business Owner (UBO), the Source of Funds (SOF) or if the person is a PEP or on a sanction list in another country.
Due to these challenges, there is a high risk of wrongly identifying or failing to recognise an individual as a high AML risk.
How can I ease the burden of international AML checks?
Using systems and processes designed for a domestic clientele to deal with international clients is a risk to your business. Easing the burden of international AML checks requires ‘fit for purpose’ systems, processes, and training geared specifically to international clients.
While your staff may be familiar with how to spot AML ‘red flags’ for domestic clients, they must also be trained on how to do this for international clients. Likewise, you must have AML conveyancing processes and workflows for onboarding and the ongoing monitoring of international clients. Remember that not all third-party AML services and software are capable of handling international client AML checks.
Implementing an automated workflow AML solution that can handle both domestic and international clients is key to reducing the administrative burden and AML risk for your business.
Introducing OneSearch AML for International clients
OneSearch International AML with Facial Recognition is a new, easy-to-use technology solution for conveyancers with overseas clients which will easily integrate into your existing systems. OneSearch International AML with Facial Recognition provides:
- A combined digital ID verification and real-time facial recognition capable of dealing with clients in other jurisdictions
- International PEP and sanction screening using real-time information from over 350 datasets, including domestic and international government websites and public transparency projects.
- Adverse media screening
- Law enforcement and Special Interest Person (SIP) screening for international clients and
- Headshots for PEPs sourced from official international government websites to reduce false positives during the PEP screening process.
Without fit-for-purpose training, processes, and systems to deal with international clients, it is all too easy to miss money laundering red flags and risks, which can lead to fines and serious reputational harm.
With OneSearch International AML, you can relax knowing that your firm is meeting its AML regulatory requirements, and any AML risks will be picked up early or at any point throughout the transaction.
We are delighted to welcome Claire Slade to the OneSearch team as Business Development Manager.
Claire brings over 20 years of experience in the business development field, having cultivated strong relationships and driven significant revenue growth throughout her career. For the past three years, Claire served as a Business Development Manager at OnTheMarket. Prior to that, she held positions at Yell, Mercedes Benz Finance, and Pendragon.
In her new role at OneSearch, Claire will be responsible for executing strategic initiatives to ensure conveyancing professionals and property data providers can obtain all the property information they need in one place, as well as providing them with the tools they need to complete transactions faster and with greater ease.
“I am thrilled to be joining OneSearch at such an exciting time for the company,” said Claire. “OneSearch’s reputation is unparalleled in the industry, and I am confident that I can play a key role in helping businesses leverage this data to achieve their goals. I am looking forward to working with the talented team at OneSearch and building strong partnerships with our clients.”
Elizabeth Jarvis, Managing Director at OneSearch, added:
“We are delighted to welcome Claire to the OneSearch team. Her extensive experience and proven success in business development make her a valuable asset. Claire’s expertise will be instrumental in driving our growth strategy and expanding our reach within the search and property data market.”
Tired of spending hours on Anti-Money Laundering checks?
We’ve all been there. But what if you could streamline the process and get it done in minutes?
In the following video, we’re introducing you to OneSearch AML, your one-stop shop for fast and efficient Anti-Money Laundering checks. We’ll take you step-by-step through the process of adding OneSearch AML to your conveyancing order, and show you exactly what your client will experience during verification.
See how it works in the video below:
Get ready to say goodbye to lengthy AML processes and hello to a smoother conveyancing experience!
We are delighted to launch our new innovative AML check designed to enhance the way property professionals manage compliance and transactional due diligence.
OneSearch AML harnesses market-leading technology and offers conveyancers an up to date Know Your Client checker in the fight against fraud in the sector, all whilst ensuring adherence to recently updated industry standards and guidelines.
Ongoing monitoring
New digital advancements have meant that previous methods of identity verification within the legal setting such as manually checking documents, face-to-face meetings, and waiting for postal deliveries for documents have become outdated. Now, with biometric scanning, NFC technology, secure encryption, and cloud-based storage, ID checks are a far more safe, accurate, and effortless part of the conveyancing process.
Furthermore, OneSearch AML offers ongoing monitoring checks, which provides post-sale examinations of any changes, developments, or updates to customers profiles over a 12-month period.
Robin Wells, Head of Sales Operations at OneSearch added:
“The launch of OneSearch AML underlines our ongoing commitment to empowering conveyancers in navigating their day-to-day workflow, and in this case, support for any complexities that run alongside AML due diligence.
“For us, we know and understand the complexities of KYC regulations of our clients – assessing risks, identifying suspicious activities, and especially ongoing monitoring are all imperative to our customers and to the industry as a whole. OneSearch AML solution delivers quick, secure, and accurate cover across all these areas.”
Challenges in Anti-Money Laundering Compliance
The launch aligns with insights from the SRA’s Anti-Money Laundering annual report, revealed in October 2023, which highlighted certain areas needing attention within law firms. Among the observations, it was noted that a portion of reviewed firms, specifically 66 out of 224, require additional support to fully comply with anti-money laundering regulations. Unfortunately, the legal sector often faces challenges regarding money laundering, contributing to a broader concern around the flow of approximately £100 billion in illicit funds through UK businesses and financial institutions each year.
Elizabeth Jarvis, Managing Director at OneSearch said:
“The message from the SRA annual report was clear. All legal firms need to ensure they are committing time and resources to counteract modern money laundering attempts, and we offer our strongest support with OneSearch AML.
“The service has been created to be the single, comprehensive solution for our customers, easing any worry or burden they may have over how best to comply with all relevant standards and guidelines.”
The Q1 2024 release of Landmark’s Residential Property Trends Report is now available. This report contains the most recent data from the residential property transaction pipeline, covering listings, SSTC/SSTM, searches ordered and completions.
Our latest data gives reason for cautious optimism: listing volumes remain strong, building steadily through Q1 ‘24 in England and Wales. Listing numbers in Scotland also began on a positive footing.
Key findings from Q1 ‘24 include:
- In England and Wales, listing volumes in Q1 ‘24 were up 5% vs Q1 ’19. Listings in Scotland were down just 2% in Q1 ‘21 vs Q1 ‘19.
- SSTC volumes in England and Wales for Q1 ’24 tracked 32% below Q1 ‘19, with SSTM levels in Scotland 22% down vs Q1 ‘19.
- Completion volumes in England and Wales for Q1 ‘24 were down 41% compared to Q1 ‘19 levels. In Scotland, completions were down 2% in Q1 ‘24 vs Q1 ‘19.
Download the Cross Market Activity edition covering England, Wales and Scotland, unveiling the latest residential property market data and insight for Q1 ‘24.
We trust you’ll find this report to be a valuable guide as we move into the second quarter of 2024.
When carrying out Anti-Money Laundering checks on clients, all regulated industries must identify PEPs and sanctioned individuals during onboarding, to comply with KYC and AML requirements.
In this post, we take a deep dive into what they are, who meets the criteria, and explore best practices for your firm, safeguarding you and your business from any financial or reputational perils.
What is a Politically Exposed Person?
A PEP is an individual who is or has been entrusted within a prominent public institution, making them susceptible to corruption. Under anti-money laundering legislation, if a client is identified as a PEP, enhanced due diligence (EDD) is required.
Who specifically classifies as a Politically Exposed Person?
Overall, the list of PEP individuals includes, but is not limited to, heads of states, heads of governments, ministers, MPs, members of high-level judicial bodies such as high courts, as well as family members and close business associates of all the above.
Based on Money Laundering Regulations and UK Government guidance, PEPs are listed into tiered categories depending on their role. For example, Heads of State and Government would be regarded as Tier 1 while mayors and members of local councils would be Tier 4. Under UK Government guidance the expectation is firms should be identifying Tier 1 & 2 PEPs as a minimum.
My firm has identified a PEP, should we cease working with them?
If your client has been flagged as a PEP, you should apply enhanced due diligence measures to the case. This will differ on a case-by-case basis, but this does not automatically mean you should cease business.
Law society guidance suggests you must:
- Get senior management approval for the business relationship
- Take adequate measures to establish the source of wealth and source of funds
- Closely monitor the business relationship throughout
If you know or suspect a money laundering offence is taking place, you must make a disclosure to your firm’s money laundering reporting officer (MLRO).
What about Sanctions?
In addition to enhanced due diligence, all firms are also required to ensure they are not working with sanctioned individuals.
Sanctions and sanctions lists serve as a critical safeguard against financial crime. Businesses use sanctions checks to prevent themselves from getting involved with sanctioned entities. This way, businesses not only avoid the risk of non-compliance fines but also safeguard their reputation in the process. Conducting both PEP and sanction checks is crucial for businesses to minimize the chances of engaging with high-risk individuals or entities and to maintain a robust due diligence process.
Where I can I find out more?
OneSearch AML empowers you to navigate the complexities of due diligence with ease. Our innovative technology simplifies the onboarding process, saving you valuable time without compromising security.