Time is running out to complete the SRA's AML Questionnaire

And Kim can help

The Solicitors Regulation Authority (SRA) has introduced a new Anti-Money Laundering (AML) data collection exercise that law firms are required to complete between 8 August and 23 September 2024.

This is part of the SRA's ongoing efforts to enhance the legal sector's compliance with AML regulations and mitigate risks associated with money laundering activities. It allows the SRA to assess how effectively law firms are implementing these regulations, gauge compliance levels, identify areas of risk, and determine where further guidance or enforcement action may be required.

Completing this questionnaire falls primarily on each firm's Compliance Officer for Legal Practice (COLP). Still, it also requires significant input and collaboration from the Money Laundering Reporting Officer (MLRO) and other senior role holders.

Here is a brief guide of what is covered in the questionnaire:

• Firm-Wide AML Policies and Procedures: This section helps the SRA understand a firm's AML policies, including how these are communicated and enforced.
• Risk Assessment: Firms are required to detail their risk assessment procedures, highlighting how they identify and manage potential money laundering risks in their client base and transactions.
• Training and Awareness: The SRA would like to know when your employees last received AML training. They will evaluate the adequacy of AML training provided to staff, which ensures that all employees, regardless of their level, are aware of their responsibilities.
• Client Due Diligence (CDD): It helps gather information on how firms conduct CDD, including ongoing monitoring of clients and transactions.
• Suspicious Activity Reporting (SAR): Firms will need to report on their processes for identifying and reporting suspicious activities to the appropriate authorities.

Completing the questionnaire may pose several challenges for law firms, such as:

• Data Collection and Accuracy: Gathering the required data across multiple systems can be time-consuming and prone to errors, particularly in larger firms with decentralized processes.
• Resource Allocation: COLPs, MLROs, and other senior staff may need help balancing the questionnaire's demands with their ongoing responsibilities, which may lead to potential delays or oversights.
• Client Information Updates: Firms may need to request additional or updated information from clients to complete the questionnaire, which can be a slow process, particularly if clients are unresponsive.

How Kim Can Enhance Data Collection and Reporting

Firms have a lot of data silos, and the information required may reside in a variety of systems. Kim’s open APIs make it easy for firms to pull information from multiple systems, such as from their onboarding and practice management tool, into one form to compile the information in a way that makes it easy for the firm to report on.

Should some information still need to be updated or firms have yet to implement Sanction Checking as part of onboarding, Kim has a special feature called "Campaigns," which can help. This feature enables an automated questionnaire to be sent on mass, streamlining the data collection process. It also provides a view of the progress and the ability to monitor the responses and automated reminders for those who have yet to respond.

Firstly, you will need to identify the gaps in your data and compile a list of questions to send out. Using our no-code wizard, you can then use Kim to create a customized questionnaire tailored to capture this information. Once the questionnaire is created, you can use the campaign feature to send it out, track responses, and then download the responses in bulk for further analysis. Further benefits of the campaign feature are as follows:

• Pull data from disparate systems: Firms can create questionnaires that capture specific data points needed. This ensures critical information is quickly compiled and it's tailored to the exact requirements you need. Integrating Kim with your existing systems means you can automatically push or pull any relevant data into/out of the questionnaire, reducing the need for manual rekeying and minimizing the risk of errors.
• Data Pre-Filling: If you ask clients to answer questions, take the burden off them by pre-filling forms with the existing data you hold about them and ask them to confirm. This not only speeds up the process but also improves data accuracy.
• Streamlined Follow-Up: As mentioned, you can track responses and set up reminders to send to those who have not yet completed the questionnaire. The reminders can then be manually triggered one-by-one or on mass to all non-respondents.
• Real-Time Data Integration: As responses are collected, the data can be automatically updated in the firm's reporting system, ensuring that the most current information is available for compliance purposes.

As firms prepare to complete and submit the AML questionnaire before 23 September 2024, they need to ensure all the relevant data is collected and analyzed. Integrating Kim into their compliance strategy could be the difference between a smooth, efficient process and one fraught with delays, inaccuracies and manual effort. The ability to join up disparate systems, pre-fill data, manage the process effectively, and ensure timely client responses will be invaluable as firms navigate this regulatory challenge.

Using Kim’s campaign functionality internally to confirm attendance and understanding of training and streamline employees' necessary progress also provides risk teams with auditable data at their fingertips.

Final Thought

Law firms should approach this questionnaire as a critical compliance task that requires meticulous data collection and reporting. Kim can provide an efficient and secure way to manage this process, ensuring firms can meet their regulatory obligations with confidence and ease. Once you have submitted your responses, Kim will help you continue to gather relevant information in a structured and secure manner for further compliance campaigns, whether internal or external.