June 26 2019
Legal professionals operate within a broad spectrum of business structures that vary from country to country and even within a country. Ranging from sole practitioners to multi-national firms, they provide a vast range of services. Given the diversity in scale and activities, some legal professions may be more vulnerable to being exploited for money laundering (ML) and terrorist financing (TF) than others.
This guidance highlights the need for a sound assessment of the ML/TF risks that legal professionals face so that the policies, procedures and initial and ongoing client due diligence (CDD) measures can mitigate these risks. This risk-based approach (RBA) is central to the effective implementation of the FATF Recommendations to fight money laundering and terrorist financing.