The SRA has updated its AML sectoral risk assessment. The major changes from the previous Sectoral Risk Assessment (dated 24 July 2023) are in relation to:
- Vendor fraud
- Pooled client funds
- Third-party managed accounts
- Irregular methods of transferring funds
- Sanctions risk has been placed under its own risk heading
- Updated references to Covid-19, retaining risks which have become part of usual business and deleting factors which are no longer relevant.
- Modern slavery in relation to cash-based industries
- Further references to AI and cybercrime
- Updated position with regard to domestic PEPs
Firms should now review and update their PWRA accordingly.
To view the new sectoral risk assessment, see SRA | Sectoral Risk Assessment – Anti-money laundering and terrorist financing | Solicitors Regulation Authority
The SRA has published more information on preventing money laundering and terrorist financing.
