The Legal Sector Affinity Group (LSAG) updates

The Legal Sector Affinity Group (LSAG) has published the latest update of its HM Treasury approved guidance on preventing money laundering in the legal sector.

The changes reflect the recent amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and include:

  • Guidance on the new requirement to carry out proliferation financing risk assessments, either as part of the firm’s existing practice-wide risk assessment or as a standalone document.
  • Changes to the duty to report discrepancies to company registries – from 1 April 2023, these will only need to be made in certain defined circumstances.
  • Part 2 of the guidance is intended to provide more tailored AML guidance for specific types of legal practices or practitioners or those providing certain services. Part 2b and 2c are to be read alongside updated Part 1.

Part 2c Guidance is specific to Notaries

Part 2b Guidance is specific to Trust and Company Service Providers

Part 1 updated guidance (March 2023)

See also Legal Sector Affinity Group (LSAG) – Advisory Notice