This eLearning course provides practical training on source of funds and source of wealth checks, tailored for staff working in law firms. Legal practices are attractive targets for money launderers, and understanding where a client's money and wealth actually comes from is a critical part of a firm's anti-money laundering (AML) defences.
The course begins by covering the fundamentals, explaining what is meant by source of funds and source of wealth, the difference between the two concepts, and why both must be understood and documented as part of client due diligence. It explains how these checks sit within the wider AML framework and the obligations placed on law firms by the Money Laundering Regulations and the SRA.
Learners are then shown how to recognise the red flags that may indicate that funds or wealth originate from criminal activity. The training uses practical examples to illustrate the types of inconsistency, implausibility, or evasiveness that should prompt closer scrutiny and further questioning.
The final part of the course focuses on adopting a risk-based approach, explaining how to assess the level of risk a client or transaction presents, the depth of enquiry that is appropriate in different circumstances, and the evidence and documentation that should be retained. It also covers when and how to escalate concerns. Upon completion, learners will be able to carry out source of funds and source of wealth checks effectively and with confidence.
