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Effective source of funds and source of wealth checks require more than collecting bank statements or accepting a client’s explanation. Relevant information must be understood, assessed against the client and matter risk profile, and supported by an appropriate audit trail.
Legal Eye provides live, interactive source of funds and source of wealth training designed specifically for law firms. The session uses practical guidance and examples to help participants ask appropriate questions, assess supporting evidence and recognise when further enquiries may be required.
The one-hour session is delivered exclusively to your firm and tailored following an initial scoping call, helping ensure that the content reflects your services, risk profile and working practices.
What is the difference between source of funds and source of wealth?
Source of funds concerns the origin of the particular money being used in a transaction or matter and how that money was generated.
Source of wealth concerns the origin of a client’s or relevant third party’s overall wealth and financial position.
Although the two can overlap, they are distinct considerations. The nature and extent of the enquiries required will depend on the circumstances, applicable legal requirements and the assessed level of risk.
Discuss Your Training Requirements
What the training covers
The content will be tailored following the initial scoping call. Topics can include:
- The difference between source of funds and source of wealth
- The role of these checks within an effective risk-based approach
- Understanding the client, matter and transaction
- Asking appropriate and proportionate questions
- Gathering and scrutinising supporting evidence
- Assessing whether information is consistent with the client’s profile
- Third-party funding and gifted deposits
- Funds originating from overseas
- Cryptocurrency and less transparent funding arrangements
- Recognising inconsistencies and red flags
- When further enquiries or internal escalation may be required
- Tipping-off considerations
- Recording enquiries, evidence and decisions
- Practical scenarios and case studies
Why effective source-of-funds checks matter
Source-of-funds checks are an important control against money laundering and other financial crime. Collecting documents alone is not sufficient; firms must understand and assess the information obtained and investigate unusual or inconsistent patterns where appropriate.
The SRA’s thematic review found that, although general awareness was good, some firms collected documents without properly assessing them. It also identified missing audit trails, record-keeping weaknesses and insufficient explanations for decisions.
Practical training can help fee earners and compliance teams apply a consistent, risk-based approach and create a clear record of the enquiries undertaken.
Who is the training for?
The training can be tailored for:
- MLROs, Deputy MLROs and MLCOs
- COLPs and internal compliance teams
- Partners, directors and managers
- Solicitors, conveyancers and other fee earners
- Paralegals and trainees
- Members of staff responsible for client due diligence
- Anyone responsible for reviewing or approving higher-risk matters
How the training works
1. Initial discussion: We discuss your firm, the intended audience and its training objectives.
2. Scoping call: Relevant services, risk areas and practical challenges are identified.
3. Tailored preparation: The content and scenarios are adapted to reflect your firm’s requirements.
4. Live online delivery: The interactive one-hour session is delivered exclusively to your firm.
5. Training materials: A recording and presentation slides are provided for appropriate internal use.
Training developed by legal-sector AML specialists
The training is developed and delivered with input from Legal Eye’s experienced legal-sector risk and compliance professionals. Our practical approach helps participants apply source-of-funds and source-of-wealth requirements to the situations they encounter in their day-to-day work.
Learn more about our legal-sector risk and compliance professionals.
Discuss Your Training Requirements
Frequently asked questions
Is the training delivered live and online?
Yes. The training is delivered as a live, interactive online session, allowing participants to ask questions and discuss how the topics apply to their work.
Is the session exclusive to our firm?
Yes. Each session is delivered exclusively to your firm, enabling the content and discussion to focus on your services, working practices and risk profile.
How is the training tailored?
Before the training, Legal Eye will hold a scoping call to discuss the intended audience, your firm’s services and any source-of-funds or source-of-wealth issues requiring particular attention. The content and practical examples will then be tailored to reflect your requirements.
Is the training suitable for both SRA- and CLC-regulated firms?
Yes. The training can be delivered to both SRA- and CLC-regulated firms. The content will be tailored to reflect your regulator, services, internal procedures and the responsibilities of those attending.
Will we receive a recording, and can it be shared with colleagues who cannot attend?
Yes. A recording of the session will be provided and can be shared internally with relevant members of staff who were unable to attend the live training.
Are presentation slides provided?
Yes. A copy of the presentation slides will be provided following the session for your firm’s internal reference and training purposes.
