Have you found the compliance risks hiding in your workflow?
Firms often focus on AML as the headline risk, but compliance gaps aren’t just created by criminals and bad actors trying to sneak in under the radar. In fact, many of the deepest cracks in your defences are caused by your own inconsistent workflows and incomplete documentation.
That’s why organisations must embed compliance across their business to close those gaps and avoid visits from the regulators.
There’s more to compliance than AML
AML checks dominate compliance conversations, and rightly so. We’ve all seen the headlines about firms whose sloppy processes have exposed them to serious criminal risk – and the subsequent regulatory fallout.
That’s why scrutiny – both within organisations and from the regulators – is intense, and the consequences of mistakes are often severe.
But too often firms treat AML as a standalone task, another item on the to-do list. In doing so, they overlook the wider risks embedded throughout the client lifecycle.
In fact, it’s in your onboarding, documentation, and internal consistency where those cracks can quietly form. And it’s those gaps for which the auditors are looking.
Where can you find compliance gaps?
Poor compliance isn’t always about negligence. Sometimes it’s the inevitable consequence of scattered systems and unclear workflows.
Many firms use multiple platforms for ID checks, source of funds, and document storage. Staff might use different procedures depending on the client, or duplicate tasks because systems don’t talk to each other.
The risks in that kind of setup include:
Missing or duplicated client data
Inconsistent source of funds checks
Over-reliance on admin with no oversight
Compliance records stored across inboxes, CRMs, PDFs, and shared drives
All this makes teams slower and less efficient, and more in danger of making mistakes due to missing or incorrectly updated data. This is where some of those compliance gaps form, in misinterpreted data or missed red flags.
What do the regulators want to see?
Whether you’re dealing with the SRA, CLC, or HMRC, regulators expect to see a robust, interconnected compliance system, not a scramble. They want to see:
Clear documentation of every client check
Consistency across matters
Secure storage and access to audit trails
Evidence that risks are flagged and followed up
A firm that can’t quickly demonstrate these things may face consequences even if they’ve technically done the work. Auditors don’t want to see minimum effort, they want to see best practice embedded across the client lifecycle.
How do you embed compliance?
It all begins with the right partner, and that’s where Checkboard stands out. Instead of just adding more items to the checklist, Checkboard consolidates and automates all the key compliance tasks, allowing you to embed them in your workflows from the very beginning of the client lifecycle.
That includes:
Biometric ID verification with liveness detection
Real-time screening against PEPs, sanctions, and adverse media
Open banking source of funds checks
Instant audit packs ready for review
Checkboard gives teams a holistic view of every client, allowing them to gather all the necessary data and verifications, and continuing monitoring them for red flags across their lifecycle. And with all this information logged in one place, firms don’t just meet their obligations, they prove it.
Creating a culture of compliance
Ultimately, great compliance isn’t just another step on the to-do list. It should be a mindset embedded in how your firm operates.
With the right system and the right technology partner, the whole team – from junior admin to managing partner – can contribute confidently to a culture of doing things properly.
Then, when the auditors come knocking, you’ll pass the test with flying colours.
A version of this article was originally published on Today’s Conveyancer. This version has been expanded and adapted for the Checkboard audience.
