How compliance platforms help law firms adapt to new regulations
The UK government’s new industrial strategy promises a new approach to AML regulations, aimed at reducing the burden on small law firms and unlocking their potential for growth. In particular, it wants to see small firms adopt the very latest technology to help them thrive.
What’s the new UK AML strategy?
The UK government is making long overdue changes to its AML rules for law firms.
As part of its new industrial strategy, the government will set out its vision for the thriving legal sector – in particular, how it can ease the burden of burdensome AML regulations said by critics to be stifling its success.
It also wants to modernise the nation’s legal infrastructure by promoting the adoption of digital tools and AI technology in the courts.
But until the government sets out its revised regulations in full, firms will be left wondering what shape these rules will take, and whether they’ll need to make major updates to their compliance procedures to meet them.
How small firms can remain compliant
Among the government’s aims seems to be to reduce the burden on smaller firms. Many will view this as welcome news.
For small firms, compliance often feels daunting, particularly for those with only a very small team, or even an individual, performing due diligence.
Over the last decade, dozens of firms have been fined hefty sums for breaking AML regulations. Although the government recognises the importance of these regulations for tackling crime, it also wants to ease the burden of these strict rules on small firms.
It aims to make AML regulations more proportionate to the risks faced by those firms.
Although the government’s efforts at clarity may provide some relief, small firms still need the right tools and the right people to meet their AML responsibilities.
The role of technology
That’s why the government wants to see small firms adopt emerging technologies to help them meet AML rules and to boost their growth and performance.
The government has already identified the legal sector as one of the fastest adopters of AI, making it ripe for further advances. Firms need to stay on top of the latest technology trend to thrive in this evolving landscape.
Fortunately, clearer rules aimed at technology adoption open the door wide for new compliance platforms.
Small firms in particular will benefit from tools that allow them to measure and collate data, and accurately identify and verify new clients. This will boost efficiency – especially compared to manual processes – and allow them to keep on top of new rules as they emerge by keeping the most important client data close at hand.
How to choose the right platform
Platforms like Checkboard are an essential part of the compliance toolkit. They’re a simple, efficient method for uploading identity documents, cross-referencing them with biometric data, and making rapid source of funds, AML, and sanctions checks.
Although Checkboard works for firms of all shapes and sizes, it’s particularly useful for smaller organisations without the institutional capacity for more rigorous checks.
And whether AML regulations are light or heavy, Checkboard provides the tools for fast, accurate, and compliant reporting. So, for many smaller firms, adopting a tool like Checkboard will help them easily adapt to the new compliance reality promised by the government.
A version of this article was originally published on Legal Futures.
