AML checks by solicitors are legal verification steps used to confirm a client’s identity, understand the source of their money, and assess the risk of financial crime. These checks help solicitors ensure they are not unknowingly involved in money laundering, fraud, or other illegal activities, while also complying with the law and protecting both the client and the legal system.

AML checks typically involve reviewing identification documents, confirming where funds have come from, and assessing whether a client or transaction poses any unusual risk. Solicitors follow these steps at the start of a legal matter and, in some cases, throughout the client relationship. While the process may seem routine or repetitive, it plays a key role in keeping legal services transparent, lawful, and trustworthy by preventing illegal money from entering the legal and financial system.

Why AML Checks Are Important for Solicitors

AML checks help solicitors make sure they are not unknowingly involved in illegal activities such as money laundering, fraud, or financing crime. Criminals sometimes try to use legal services to move or hide illegal money, especially during property deals, company formations, or large financial transactions.

By carrying out AML checks, solicitors protect:

• The legal system
• Their clients
• Their own professional reputation

These checks also help maintain trust in the legal profession as a whole.

Meeting Legal and Regulatory Requirements

Meeting legal and regulatory requirements means that solicitors must follow strict anti-money laundering laws set by governments and international bodies to help prevent financial crime. These rules legally oblige solicitors to verify client identities, check the source of funds, and report suspicious activity. 

Failing to meet these requirements can lead to serious consequences, including fines, loss of the right to practise, criminal charges, and long-term damage to professional reputation. As a result, AML compliance is a mandatory and essential part of modern legal work, not a choice.

If a solicitor fails to carry out proper AML checks, they can face:

• Heavy fines
• Loss of licence
• Criminal penalties
• Serious reputational damage

So, AML checks are not optional. They are a core part of legal practice today.

How AML Checks Help Solicitors

AML checks help solicitors work safely and confidently by giving them a clear picture of who their clients are and where the money involved comes from. By carrying out these checks, solicitors can spot warning signs early, judge whether a matter involves higher risk, and avoid getting involved in suspicious or dishonest activity.

This not only protects the solicitor and their firm from fines or legal trouble but also helps maintain trust and professionalism in legal services. Simply put, AML checks act as a safeguard that allows solicitors to focus on their work without unnecessary risk.

What AML Checks Do Solicitors Carry Out?

Solicitors carry out AML checks by verifying a client’s identity, confirming where their money or funds come from, assessing the risk of the transaction, and monitoring the matter for any suspicious activity throughout the legal relationship.

These usually include:

• Identity checks: Confirming the client’s name, address, and date of birth using official documents
• Source of funds checks: Understanding where the money involved in a transaction comes from
• Risk assessment: Deciding whether a client or transaction poses higher risk

For higher-risk cases, solicitors may ask for extra documents or carry out more detailed checks.

Ongoing Monitoring and Reporting

AML checks do not stop once a client is onboarded. Solicitors are expected to stay alert throughout the entire client relationship. This means regularly reviewing transactions and client behaviour to spot anything unusual at an early stage. For example, sudden changes in how money is used or the involvement of shell companies with no real business activity can be warning signs. Ongoing monitoring is especially important for long-term clients, as risks can change over time.

If a solicitor notices suspicious activity, they have a legal duty to report it to the National Crime Agency (NCA) by submitting a Suspicious Activity Report (SAR). A SAR is required when there is a reasonable concern that funds or actions may be linked to crimes such as money laundering or terrorist financing. In such situations, solicitors should always raise concerns internally, usually with their firm’s Money Laundering Reporting Officer (MLRO), to ensure the issue is handled correctly and in line with the law.

What Challenges Do Solicitors Face?

Solicitors often face several challenges when carrying out AML checks. These challenges are common across the legal profession and usually fall into the following areas:

• Not fully understanding AML obligations
  Some solicitors may be unsure about the full scope of their AML duties. This often happens when they believe the rules only apply to specific types of legal work. In reality, AML requirements apply broadly, and a lack of awareness can increase compliance risks.
• Limited time to complete checks
  AML checks take time, from reviewing identity documents to assessing risk and monitoring transactions. With heavy workloads and strict deadlines, fitting these checks into daily routines can be difficult.
• Pressure to meet client expectations
  Clients usually expect fast and efficient service. However, AML checks can slow down the progress of a case, which may cause frustration for both the client and the solicitor. This pressure can make AML tasks feel like an extra burden.

Despite these challenges, understanding and managing them properly helps solicitors stay compliant and protect their firm from legal and financial risks.

How Aware Are You of Your AML Responsibilities?

Whether you are a solicitor or a client, understanding AML obligations is important. For solicitors, staying informed and following proper procedures protects both the firm and the wider financial system. For clients, knowing why documents are required can make the process smoother and more transparent.

In today’s legal environment, AML checks are not just about compliance; they are about trust, accountability, and protecting everyone involved.

Frequently Asked Questions (FAQs)

What are AML checks carried out by solicitors?
AML checks are steps solicitors take to confirm a client’s identity and understand where their money comes from, helping prevent money laundering and other financial crimes.

Why do solicitors ask for ID and proof of funds?
Solicitors are legally required to verify who their clients are and ensure that funds used in a transaction come from a legitimate source.

Are AML checks a legal requirement for solicitors?
Yes, AML checks are required by law. Solicitors must follow UK AML regulations and professional rules set by the Solicitors Regulation Authority (SRA).

Do AML checks continue after the client is approved?
Yes, solicitors must carry out ongoing monitoring throughout the client relationship, especially if there are changes in behavior or transaction patterns.

Are AML checks the same for all legal matters?
No, the level of AML checks depends on the risk involved. High-value or complex cases usually require enhanced due diligence.

Can a solicitor report a client without telling them?
Yes, if suspicious activity is identified, solicitors must submit a Suspicious Activity Report (SAR) without informing the client.

Conclusion

AML checks carried out by solicitors play a vital role in protecting the legal system from financial crime. While these checks may seem time-consuming or inconvenient, they help ensure that clients, transactions, and funds are legitimate. For solicitors, AML checks are not just a legal requirement but a key safeguard that protects their firm, their clients, and their professional reputation. By following proper AML procedures and staying alert to potential risks, solicitors can work with confidence while contributing to a safer and more transparent financial system.

Also Read: NatWest’s £264.8m AML Fine Explained: What Went Wrong and Why It Matters