The Solicitors Regulation Authority (SRA) is set to begin its annual collection of anti-money laundering (AML) and sanctions-related data this week. Law firms will be required to submit details regarding their AML and financial sanctions activities, including how these are managed internally.

All regulated legal practices must provide information on:

• Work conducted under the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

• Any interaction with the financial sanctions regime or individuals designated under it

• Any Suspicious Activity Reports (SARs) submitted to the National Crime Agency

“We appreciate that not all firms are involved with one or more of these regimes – in which case, you will be able to submit a nil return,” the SRA noted.

The SRA highlighted the necessity of this data collection, stating: “We are required by our own regulator, the Office for Professional Body Anti-Money Laundering Supervision to take a risk-based approach to supervision. To supervise the legal sector effectively, we need to have accurate data. This allows us to see the distribution of risk across the legal profession, which in turn informs our programme of inspections and our guidance.” They added: “Collecting this information allows us to establish where the risks lie and how we can better allocate our resources. Most importantly, this data needs to be up to date and relevant so that our approach can evolve and adapt.”

To assist compliance officers, the SRA has published a specimen version of the questionnaire. These sample forms, available in Word and PDF format, are intended for preparation purposes only and should not be submitted. The resources, including a FAQ section, can be accessed on the SRA’s information page: SRA AML and Sanctions Data Requirements

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Source: Today's Conveyancer