Client Due Diligence Service
Outsourced Client Due Diligence, Source of Funds & Risk Assessments for Law Firms
Reduce the administrative burden of AML compliance with RACO’s outsourced Client Due Diligence (CDD) Service. We undertake Client Due Diligence, Source of Funds, Source of Wealth and Client & Matter Risk Assessments on your behalf, allowing your fee earners to focus on legal work whilst ensuring your firm meets its obligations under the Money Laundering Regulations 2017.
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Outsourced Client Due Diligence for Law Firms
Client Due Diligence is one of the most time-consuming aspects of Anti-Money Laundering compliance. Collecting identification documents, requesting Source of Funds information, reviewing supporting evidence, carrying out AML checks and completing risk assessments all place significant demands on fee earners and support staff.
RACO’s Client Due Diligence Service provides an outsourced solution that integrates with your firm’s existing processes. Acting as an extension of your compliance team, we collect and review the required information, complete the appropriate checks and provide a fully documented Client and Matter Risk Assessment for your file.
Whether you require support on every matter or only for selected instructions, our service provides a practical way to improve consistency, reduce administrative time and strengthen your firm’s AML compliance framework.
Why Outsource Client Due Diligence?
Outsourcing Client Due Diligence enables your firm to maintain high compliance standards whilst reducing the time spent on administrative AML tasks.
Our service helps firms:
- Reduce the administrative burden placed on fee earners
- Improve consistency across Client Due Diligence processes
- Ensure Source of Funds and Client Risk Assessments are completed thoroughly
- Strengthen compliance with the Money Laundering Regulations 2017
- Produce a fully documented audit trail for every matter
- Free internal teams to focus on delivering legal services
Many firms also choose to recover the cost of the service by charging a Due Diligence Fee or treating the cost as a disbursement where appropriate.
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Download the Full Service Brochure
For more information and costings
What is included?
Our standard Client Due Diligence Service includes
Client Identification & Verification
Collection and review of photographic identification and proof of address together with electronic AML verification using your chosen AML provider.
AML & Companies House Checks
Review of electronic AML results together with Companies House searches where required, including Ultimate Beneficial Owners (UBOs) and Persons of Significant Control (PSCs).
Source of Funds & Source of Wealth
Requesting Source of Funds information, reviewing supporting documentation and completing standard Source of Funds checks, including review of one current account and one savings account.
Client & Matter Risk Assessments
Completion of your firm’s Client and Matter Risk Assessment documentation using your existing templates and procedures.
Client Liaison
Direct communication with clients to obtain missing information, clarify documentation and ensure the Due Diligence process progresses efficiently.
Reporting to the Firm
Completion of the required documentation together with a clear summary for the fee earner, ensuring all information is retained on the matter file.
Enhanced Due Diligence Support
Where matters are identified as high risk, we notify the firm and can undertake additional Source of Funds, Source of Wealth and Enhanced Due Diligence where required.
How Our Service Works
Our process has been designed to integrate with your firm’s existing workflows.
The process reduces administrative work whilst ensuring consistency across every matter.
- ZYour firm instructs RACO once a new matter is opened.
- ZWe contact the client and obtain the required identification and Due Diligence information.
- ZWe complete AML checks, Companies House searches and Source of Funds enquiries where required.
- ZWe complete your Client and Matter Risk Assessment.
- ZWe return the completed Due Diligence pack to your fee earner for review and filing.
Service Requirements
We will work with your existing procedures wherever possible, ensuring the service integrates seamlessly with your practice.
To deliver the service efficiently, your firm will typically provide:
- ZAccess to your electronic AML provider
- ZAn email address for client communication (or we can create one for this purpose)
- ZYour Client & Matter Risk Assessment template
- ZYour Source of Funds questionnaire and supporting documentation
Download the Full Service Brochure
For more information and costings
Why firms choose RACO
Practical Compliance Support
Reduced Administrative Burden
Consistent Due Diligence
Experienced Compliance Professionals
Designed Around Your Firm
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Contact Our Team
To ask any questions about the Regulation and Compliance Office and how we can support your Law Firm, please call us on 0203 985 8550, complete the online enquiry form below, or email us info@regulationandcomplianceoffice.co.uk