The costs of complying with Money Laundering Regulations 2007

Most law firms have little idea how much it costs them in real terms to comply with the onerous and compulsory obligations of the Money Laundering Regulations 2007.

Finance is a very important part of the process of planning and putting into effect compliant systems.

Matters to be considered include:

• Lost chargeable hours for fee earners in terms of reporting compliance


• Lost chargeable hours for fee earners in terms of training compliance


• The cost of training fee earners


• The cost of training non fee earners


• Costs associated with obtaining ID evidence

There can be no doubt that the cost of compliance is massive and unless law firms get to grips with their responsibilities and the financial implications they will be heading for trouble.

The Law Society and the Joint Money Laundering Steering Group (the body which comprises UK trade associations in the financial services industry) are attempting to get reliable data figures for money laundering prevention costs and it is recognised that such data is a vital part of the educational process.

Firms which do fall foul of compliance with the regulations can face both civil and criminal penalties. How much those fines will be is not specified in the Act but the designated supervisory authorities are allowed to impose such penalty it considers 'appropriate', meaning effective, proportionate and dissuasive.

However, the authorities are instructed not to impose a penalty where there are reasonable grounds for it to be satisfied that the relevant person took all reasonable steps and exercised all due diligence to ensure that all the requirements would be complied with.

A corporate body can be guilty of an offence through an officer, who would also be guilty, if an offence was committed with the consent or connivance of an officer or to be attributable to neglect on his part.

In this aspect, officer means a director, manager, secretary, chief executive, member of the committee of management, or a person acting in such a capacity. For an unincorporated association, the definition applies to any officer of the association or any member of its governing body or someone acting in such a capacity.

ML Solutions 4U recommends that every law firm should carry out a financial appraisal of the cost of compliance. We believe that the introduction of more efficient systems will lead to significant savings and will allow firms to concentrate more on their business.

Ensuring compliance with the Money Laundering Regulations 2007
Whilst the political strategy of preventing terrorist and criminal organisations from profiting from the proceeds of crime through anti-money laundering measures has reported successes, it has also placed an onerous weight on Regulated firms.

ML Solutions 4U is able to assist a firm's MLRO in shouldering that weight by providing targeted and tailored money laundering seminars and training packages, thereby providing the knowledge, techniques and systems which can help a firm to achieve compliance.

Training of MLROs and compliance staff is integral to ensuring appropriate systems and controls are put in place and maintained. ML Solutions4U provides this specialist training in addition to anti-money laundering training for all staff working in the regulated sector.

For more information regarding the support that ML Solutions 4U can offer your organisation with its obligations under the Money Laundering Regulations 2007, please complete the online enquiry form or telephone an anti-money laundering advisor on 0845 402 0001.

Money Laundering Information » Anti Money Laundering Training and Associated Costs