Practical AML Training for SRA Regulated Law Firms
Understanding and evidencing Source of Funds (SOF) and Source of Wealth (SOW) is a critical part of Anti-Money Laundering compliance for law firms regulated by the Solicitors Regulation Authority (SRA) for transactional matters.
Law firms are expected to apply a risk-based approach to client due diligence and ensure that funds used within a transaction can be properly explained and evidenced. Where higher risk factors are present, firms must also apply Enhanced Due Diligence (EDD).
This training course provides practical guidance to help fee earners and compliance professionals understand how to assess, verify and document Source of Funds and Source of Wealth in line with the Money Laundering Regulations 2017 and SRA expectations.
The session focuses on practical implementation, helping staff identify risk indicators, obtain appropriate evidence and maintain clear audit trails.
Why This Training Is Important
Source of Funds and Source of Wealth checks are frequently misunderstood or applied inconsistently and disproportionality within law firms.
Inadequate documentation, insufficient evidence, or misunderstanding the difference between SOF and SOW can create regulatory risk for both the firm and individual fee earners.
Asking for too much can cause clients and other parties to become dissatisfied with the service.
This course provides clear, practical guidance on how to apply these requirements within everyday legal practice and how to demonstrate that appropriate checks have been carried out.
What the Training Covers
The training session provides structured guidance on:
- The difference between Source of Funds and Source of Wealth
- The regulatory expectations under the Money Laundering Regulations 2017
- How SOF and SOW fit within the risk-based approach to AML compliance
- Identifying high-risk clients and matters
- When Enhanced Due Diligence (EDD) is required
- Acceptable forms of evidence for Source of Funds and Source of Wealth
- Identifying risk indicators and red flags
- Practical examples of documenting SOF and SOW checks
- Maintaining appropriate records and audit trails
The session includes practical examples to help staff apply these requirements confidently when onboarding clients and reviewing transactions.
Who This Training Is For
This course is designed for individuals involved in client onboarding, AML compliance and risk management within SRA regulated law firms, including:
- Fee earners
- Compliance Officers for Legal Practice (COLP)
- Compliance Officers for Finance and Administration (COFA)
- Money Laundering Reporting Officers (MLRO)
- Money Laundering Compliance Officers (MLCO)
Practice managers and senior management
Learning Outcomes
By the end of the training session, participants will:
- Understand the difference between Source of Funds and Source of Wealth
- Recognise when Enhanced Due Diligence is required
- Identify high-risk scenarios and potential red flags
- Understand what evidence may be required to verify SOF and SOW
- Apply a risk-based approach when assessing funds used in transactions
- Maintain appropriate documentation and audit trails