Firms risk regulatory action without AML training

Firms that fail to prioritise Anti-Money Laundering (AML) training risk regulatory penalties, warns The Professional Alternative, following critical findings from the Solicitors Regulation Authority’s (SRA) latest thematic review. The report, based on 254 inspections and 258 desk-based reviews, exposes the vulnerabilities within firms’ AML compliance efforts, highlighting non-compliance in critical areas that result in fines and disciplinary action.

Key compliance challenges identified by the SRA

The report reveals that while 77 per cent of firms are either fully or partially compliant with AML regulations, a concerning 23 per cent remain non-compliant, facing potential disciplinary actions. The breaches identified include:

• Failure to carry out proper staff training
• Inadequate risk assessments
• Insufficient transaction monitoring

These issues underscore the necessity for firms to implement effective and tailored AML training programs that meet compliance obligations comprehensively and practically.

A culture of vigilance is essential

Jack Constant, Director of Sales at The Professional Alternative, stresses that AML compliance should not be seen as a mere formality. Instead, it requires a deep-rooted culture of vigilance and understanding across all levels of an organisation.

“It’s not an option for firms to just look at AML compliance as just about ticking a box,” says Jack. “With inspections on the rise, firms must ensure their training is relevant, engaging, and regularly updated to meet regulatory standards before it’s too late.”

Inadequate training as a compliance weakness

The report highlights that outdated or ineffective AML training is a leading cause of non-compliance among firms. The Professional Alternative offers a practical solution through AML eLearning modules. These modules combine:

• Industry-specific content
• Interactive scenarios
• Bite-sized sessions that fit into busy work schedules

Each module takes less than 10 minutes, yet provides comprehensive insights into AML requirements, covering everything from legislation to recognising red flags.

Tailored training solutions for varying firm needs

Understanding that not every firm requires the full suite of training services, The Professional Alternative now offers one-off course options, allowing firms to address specific compliance training needs without committing to a full platform subscription.

“We recognise that not every firm requires access to our full suite of hundreds of compliance and professional development courses,” Jack Constant explains. This flexibility enables firms to target specific areas of improvement efficiently and effectively.

Simplifying compliance administration for firms

To further support firms, The Professional Alternative provides tools to reduce the administrative burden of compliance:

• Automatic progress tracking
• A year-end CPD report
• Traceable training certificates to demonstrate compliance commitment to regulators like the SRA

These tools ensure firms can confidently showcase their commitment to maintaining high compliance standards, providing transparency and accountability that regulatory authorities require.

The SRA’s thematic review serves as a stark reminder that AML compliance is no longer a simple formality but a robust, ongoing responsibility. The Professional Alternative addresses this need by offering tailored, accessible AML training solutions and tools that integrate seamlessly into firms’ workflows. By fostering a culture of compliance vigilance and providing customisable training solutions, firms can meet AML obligations effectively, reduce regulatory risks, and safeguard their operational integrity across all levels of their organisation.