Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Regulations for Lawyers

Introduction

As a lawyer, it is essential to understand and comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations. These regulations aim to prevent the financing of terrorism and money laundering activities that can have serious consequences for individuals, businesses, and the economy.

Key Requirements for Lawyers

Enhanced Due Diligence (EDD)

• Apply EDD measures to high-risk clients
• Obtain further information about the client’s identity
• Verify documents
• Obtain senior management approval
• Establish the source of funds
• Ongoing monitoring of the business relationship

Determining the Beneficial Owner

• Take reasonable measures to determine whether a client is acting on behalf of a third party
• Identify the beneficial owner behind a corporate entity or trust

Record Keeping and Internal Control Measures

• Keep records of each transaction for a specified period (up to 10 years)
  • Transaction details
  • Customer identification documents
  • Source of funds declarations
  • Suspicious transaction reports
• Develop and implement internal control measures, policies, and procedures to prevent money laundering and financing of terrorism
• Appoint a Money Laundering Control Officer (MLCO) with overall responsibility for AML/CFT compliance

Conclusion

By understanding and complying with these regulations, lawyers can help identify and prevent money laundering activities, protecting individuals, businesses, and the economy from serious consequences.