Amiqus

LSAG anti-money laundering guidance update: employee screening process

In March 2023, the Legal Sector Affinity Group (LSAG) published the latest update of the guidance on anti-money laundering.

The purpose of the guidance is to assist solicitors and law firms understand their legal responsibilities as outlined in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Employee checking for AML under the LSAG guidance

Section 9.4 in the LSAG guidance expands on screening relevant employees both before and during their employment.

Within this section, the LSAG emphasises the importance of conducting thorough background checks on prospective employees. This involves verifying their identities, checking references, and assessing their previous employment history. By implementing robust screening processes, law firms can mitigate the risk of hiring individuals with a history of financial misconduct or involvement in illicit activities.

Firms must uphold a vigilant approach and address any signs of suspicious behaviour exhibited by employees, which is why Section 9.4 also highlights the significance of ongoing monitoring and screening of employees during their tenure. This involves conducting regular assessments to ensure that employees continue to meet the required standards of integrity and remain compliant with anti-money laundering regulations.

How can Amiqus help you comply with the LSAG guidance

Many law firms still onboard staff using static, lengthy, manual forms. This makes it difficult to monitor, review applications and collect documents from prospective employees which, in turn, makes it challenging to identify and resolve red flags. However, by leveraging Amiqus, legal firms can automate various aspects of the screening process, saving time and ensuring thorough due diligence.

Section 9.4 of the LSAG guidance recommends the use of technology to verify the identities of employees. As a government certified identity provider, Amiqus meets the highest levels of confidence required by the new digital schemes approved by the UK government, ensuring that you get the most comprehensive and accurate results while verifying the identity of your employees.

One of the key benefits of using Amiqus is access to extensive databases and resources, which enable firms to verify an individual’s identity, check their professional history, and identify any adverse records. This helps firms make informed decisions when hiring new employees and mitigates the risk of potential money laundering or fraudulent activities within the organisation.

Furthermore, Amiqus provides ongoing monitoring services to keep track of employees’ compliance with anti-money laundering regulations. This ensures that firms can promptly identify and address any changes in an employee’s status that may pose a risk to the organisation’s integrity.

Conclusion

By integrating Amiqus into their compliance processes, legal firms can enhance the effectiveness and accuracy of their employee screening procedures which aligns with the recommendations outlined in the LSAG guidance.

Amiqus is the only UK government certified provider under the Trust Framework that offers a full client and employee compliance platform. While other providers may meet the demands of AML compliance on one front or the other, with Amiqus, you can trust that your client due diligence and employee vetting are carried out to the highest standard within a single, unified system.

By choosing Amiqus, you gain a competitive edge in the market. If you’re interested in implementing an effective process for employee checks and background screening at your firm, get in touch with us today.

This article was submitted to be published by Amiqus as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

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