SRA AML Audit

An independent Anti-Money Laundering audit for SRA regulated law firms does not have to be performed by an external auditor; nevertheless, the majority firms opt for this approach.

Taking into account the LSAG guidance, conducting an external audit becomes considerably sensible. The LSAG guidance underscores the following points:

• The audit should not be carried out by the firm’s internal compliance team or MLRO/MLCO.
• It is discouraged for the audit to be conducted by the team responsible for the initial work.
• Individuals conducting the audit must possess expertise in Anti-Money Laundering and Terrorist Financing regulations.

The majority of law firms lack access to experts who are not already part of their compliance team that carried out the initial work. Moreover, most firms are not likely to have the resources to shift staff from essential business activities.