Written by:
Grant Yuill
Head of Marketing & Customer Engagement
Anti-Money Laundering (AML) compliance is a critical responsibility for law firms, especially in the face of growing scrutiny from regulatory bodies. Recently, the Law Society of Scotland’s AML subcommittee raised serious concerns about the accuracy and quality of data submitted as part of the AML certificate process. More than 70 firms – around 10% of supervised practices – submitted incorrect information, ranging from duplicate and conflicting figures to a failure to provide required jurisdictional details for non-UK work. The Law Society’s AML team has warned that if these errors persist, firms risk facing disciplinary action.
Given the complexity and volume of data required for AML compliance, these concerns are valid. Many firms struggle to manage customer due diligence, record-keeping, and risk management without robust systems in place. This is where legal practice management software like Denovo’s CaseLoad system can be a game-changer, helping firms avoid errors and ensuring that all AML obligations are met efficiently.
At Denovo, we understand these challenges and have worked with hundreds of law firms to create solutions that protect them from both legal and reputational risks. One of the standout tools within CaseLoad is the AML Risk Assessment feature—a comprehensive digital solution designed to streamline AML processes and reduce the risk of errors.
How CaseLoad Can Help You Meet AML Compliance
Comprehensive Tracking and Status Monitoring: With the AML Risk Centre within CaseLoad, firms gain access to a centralised dashboard that tracks the status of all completed risk assessments. This includes pending tasks, such as those needing further client information or awaiting approval from the Money Laundering Reporting Officer (MLRO). By maintaining an up-to-date overview, your firm can stay on top of all AML-related tasks, ensuring no deadlines or regulatory obligations are missed.
Detailed Client and Transaction Analysis: Accurate AML submissions depend on thorough client and transaction analysis. CaseLoad prompts users to categorise clients as natural or non-natural persons, gathering detailed information on identity verification, geographical location, and interaction types. The system also checks for politically exposed persons (PEPs), sanctions, and adverse media mentions, all of which contribute to a client’s risk profile.
Source of Funds and Transaction Specifics: Understanding the source of funds is one of the most critical aspects of AML compliance. CaseLoad’s risk assessment tool captures detailed information about the origin of funds and the nature of transactions, helping firms assess whether a transaction is high-risk. This allows your team to document every step of the process and ensure that each transaction is evaluated for its potential risk of money laundering.
Preventing Errors with Approval Workflows and Automated AML Certification
A significant part of the Law Society’s concern revolves around the human errors that arise when handling large volumes of data. CaseLoad mitigates these risks through automation and structured workflows. Once a risk assessment is complete, the system assigns a risk rating—low, medium, or high—based on the collected data. This rating triggers an automated event that notifies the MLRO, ensuring all high-risk transactions receive the necessary review.
In addition, CaseLoad’s AML certification process simplifies documentation by auto-filling responses based on previously collected data. For example, in property-related transactions, property details and transaction specifics are pre-filled, reducing the likelihood of errors in the certification process and ensuring firms maintain complete records for compliance audits.
Steven Hill on Denovo’s AML Solutions
“As the regulatory environment becomes more complex, law firms need robust systems to ensure accuracy in their AML submissions,” says Steven Hill, Managing Director of Denovo. “We’ve invested significant time into developing our digital risk assessment tool, which integrates with the latest Law Society of Scotland risk assessment forum. This tool automates the evaluation of client and transaction risks, helping firms avoid the mistakes that can lead to disciplinary action. Our seamless integration with Amiqus further enhances these capabilities, enabling firms to manage AML compliance efficiently. With new features like our Matter Risk Assessment, we’re providing law firms with the most advanced tools to stay ahead of regulatory changes.”
Supporting Your Firm in Navigating AML Compliance Challenges
With the Law Society of Scotland’s AML team warning of potential disciplinary actions for firms that continue to submit erroneous data, it’s more important than ever to have a robust system in place to manage these tasks.
By leveraging CaseLoad, your firm can mitigate the risk of mistakes, improve data accuracy, and streamline the AML compliance process. Our team is available to support any firm in Scotland that has concerns about their AML submissions. We can help ensure you’re fully equipped to meet regulatory standards, safeguarding your firm from legal and reputational damage.
Ensuring compliance with AML obligations is a must. The concerns raised by the Law Society of Scotland underscore the importance of accurate data management in this area. Denovo’s CaseLoad AML Risk Assessment tool offers a detailed, structured, and automated approach to compliance, helping law firms avoid costly errors and meet their obligations with confidence.
If your firm is struggling with the accuracy of its AML submissions, we are here to help. Get in touch today to learn more about how Denovo can support your firm in staying ahead of regulatory requirements.
Ready to integrate CaseLoad into your operations?
Reach out to us today to learn more:
• Email: info@denovobi.com
• Call: 0141 331 5290
• Book a Demo: Experience CaseLoad in action by booking a demo now.
Don’t wait—take the first step towards superior compliance and risk management. Transform your firm’s AML processes today.
