1. Introduction
A former lord chancellor predicted that new corporate ‘failure to prevent’ offences will likely be added to the government’s latest economic crime legislation as it passes through parliament. Sir Robert Buckland KC MP, now secretary of state for Wales, told a conference in London – 10th October 2022 – that amendments could strengthen the current existing measure beyond the recommendations of this year’s Law Commission report.
At the conference, Max Hill, director of public prosecutions, said that the CPS supported a review of corporate criminal liability laws. ‘Extending the “failure to prevent” principle and reform of the identification principle could help to address some of the challenges we face under the current law,’ he said. The Economic Crime and Corporate Transparency Bill is due to have its second reading in the House of Commons on Thursday 13th October. The updated measure would reform Companies House and create new powers to compel businesses to hand over information which could be related to money laundering or terrorist financing.
2. Failing to prevent money laundering
In a recent announcement the SRA already confirmed there are suggestions it will be given unlimited fining powers with regard to AML regulation failures. Calls for an expansion of the failure to prevent regime to broader economic crimes, including fraud and money laundering, would add further weight to the increasingly severe penalties firms are facing should they fail in their obligations in respect of preventing money laundering.
3. Compliance of economic crime prevention
How confident are you that your AML prevention procedures are adequately maintained and sufficiently applied, and would they hold up to strengthened scrutiny?
If you believe your firm may be at risk or wish to confirm your firm is achieving the required standard, at The Strategic Partner, we offer a range of solutions.
- Regulation 21 AML 2017 Independent Audit – Our service provides firms with a completely independent audit and ensures the review is completed and reported on in accordance with the regulatory requirements. The output of which provides the firm with a written gap analysis and solutions to remedy any issues that rise and ensure the firm is compliant, find out more.
- Training – Our typical AML Training includes:
- AML Training for ALL staff to meet the firm’s obligation to provide annual training.
- 1-2-1 training for the MLRO and MLCO on their obligations and requirements.
- Practical training for those involved in client onboarding to ensure their ID and AML checks are correctly completed. Find out more.
- File Reviews/Auditing– At TSP we engage with firms undertaking files reviews where we consider procedure, staff, systems and files to ensure the procedures are up to the required standard and being implemented at case level with a report of the outcome.
Our focus is to ensure each firm that works with us operates in a fully compliant environment and stays there. Through achieving this, the compliance officers in the business can be assured and confident that their obligations are being met, enabling them to focus on other areas of the firm.
4. Our Packaged Compliance Solutions
Implementation of robust solutions to ensure the firm achieves compliance and then maintains compliance through the provision of ongoing support and assistance: –
- Risk Regulation & compliance Service including AML – Our Risk, Regulation and Compliance Service (including AML) has been designed to provide law firms of all sizes with a compliant environment. We provide bespoke policies and procedures for how your firm works, whilst drawing your attention to any gaps in your risk and compliance activities, whilst drawing your attention to any gaps in your risk and compliance activities. We work with firms of all sizes and types, from partnerships to ABSs, high street firms, and multinational firms. Each firm is different, and whilst there is a commonality of regulation and expected standards, it is essential to recognise how a firm implements compliance to tailor the solution to each firm’s working practices.
- Risk, Compliance, AML Guidance and Register Administration Service– Running a compliant law firm is not just about implementing a set of policies and procedures; the obligations of the Compliance Officers stretch way beyond this, as there is an ongoing responsibility to manage, maintain and monitor the application of the firm’s compliance strategy. The Strategic Partner’s Risk, Compliance, AML Guidance and Register Administration Service is an outsource solution providing all staff with access to an experienced and knowledgeable Compliance Manager for guidance and ensuring the regulatory requirement active management of the firm’s registers is met.
5. Get in touch with our compliance team
We would be pleased to discuss your current approach to regulation and compliance and how our services will assist you in ensuring your firm is protected.
Expert advice and guidance is essential to ensure your firm achieves a compliant status and maintains it.
Contact our team today on 0203 911 9710, email us info@thestrategicpartner.co.uk or make an online enquiry here to request your transparency fee rules review.