Client Due Diligence and Charging Clients

An important update has been released by the SRA which will be welcome news if your firm has been following the previous guidance and have not been charging clients for undertaking Client Due Diligence which includes Know Your Client (KYC) and AML Anti Money Laundering (AML) checks.

The updated guidance is as follows –

“The costs of customer due diligence can vary depending on the type of client and level of money laundering risk they pose. You can pass the costs of customer due diligence onto your clients, however, the cost will need to be clearly stated in the firm’s terms and conditions and you must abide by any relevant sections of the Transparency Rules.

It is important that clients are informed of and understand the cost in advance as this will enable them to instruct an alternative firm if they are not agreeable to the cost.”

To ensure you comply with the rules your firm must update your client care letter and ensure that it is very clear on the costs associated with CDD and importantly update the firm’s website transparency pages with the same information.

If this is the time to review your client care letter or update your website wording, TSP offers this service and we can discuss with you what is involved in helping deliver a new and up to date client care letter and if necessary updating your cost transparency content on the website.

The link to the SRA website is as follows:

https://www.sra.org.uk/solicitors/resources/money-laundering/money-laundering/

For more information on The Strategic Partner’s solutions for working with law firms to ensure they are and remain compliant with the SRA codes of conduct and other regulations and legislation visit our website. Our solutions are cost-effective and tailored to the requirements of each firm.

To discuss how we can work with your firm and your COLP, COFA and MLRO you can call us on 02039119710 or email us info@thestrategicpartner.co.uk and we will contact you.

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