Money laundering Lawyers
Learn more about money-laundering risks in legal practice and how lawyers and law firms are in scope of the Anti-Money Laundering Act (2017:630).
Explained – what does money laundering mean for lawyers?
Lawyers and law firms are subject to the Anti-Money Laundering Act (2017:630) when assisting clients with services relating to financial transactions, company formations or property transactions. These services may expose the practice to the risk of being used to conceal illicit funds. An anti money laundering lawyer can help law firms interpret the framework, prepare risk assessments and ensure that customer due diligence (CDD) and reporting procedures operate effectively in practice. It is important to note that the requirements do not apply when the lawyer defends or represents a client in legal proceedings, or provides advice on commencing, avoiding or assessing such proceedings.
When does money laundering become an issue for lawyers?
The issue arises where a lawyer provides legal advice in certain types of matters that can be used to move, conceal or legitimise illicit assets. Examples include mandates concerning company formations, real-estate transactions or the handling of client funds. If a client uses complex corporate structures, acts through intermediaries or seeks to avoid transparency in the deal, the lawyer must make a risk-based assessment and, where suspicion arises, report to the Swedish Financial Intelligence Unit (Finanspolisen).
Key AML considerations for the money laundering lawyer
Law firms need specific procedures to detect and manage money-laundering risks. Below are key measures, often delivered as part of aml compliance services.
- Perform customer due diligence at the start of new client relationships and identify beneficial owners (unless an exemption applies).
- Be alert to clients using complex corporate structures without commercial rationale.
- Review transactions that lack a clear economic explanation.
- Note payments routed via intermediaries or exhibiting unusual patterns.
- Document all CDD measures and risk assessments under the Anti-Money Laundering Act.
- Train lawyers and staff to recognise indicators of money laundering within legal advice.
- Report suspicious activity to the Swedish Financial Intelligence Unit without informing the client.
These procedures are essential for law firms to comply with the law whilst preserving trust in client relationships. An anti money laundering lawyer can also benchmark and optimise your AML compliance services to ensure they are proportionate and effective.
Money laundering Lawyers
Why AML matters in legal practice – insights from a money laundering lawyer
AML in legal practice matters because lawyers are often involved in complex transactions where the risk of money laundering is elevated. Criminal actors may use legal services to create legitimacy for illicit funds, for example by establishing corporate structures or executing real-estate deals.
By working proactively with customer due diligence, risk assessments and reporting, lawyers can reduce the risk that their services are misused. This strengthens both the lawyer’s legal position and the profession’s credibility.
Consistent AML practice enables lawyers to reconcile their role as adviser and defender with statutory requirements. The exemption for legal proceedings ensures that the client’s due process rights are protected, whilst AML obligations apply where they should.
Frequently asked questions on money laundering in legal practice
It requires lawyers and law firms to comply with the Act and take measures such as customer due diligence, risk assessment and reporting where their services risk being exploited for money laundering.
CDD is required at the start of new client relationships, for high-risk transactions and where there is suspicion of money laundering. An exemption applies where the mandate is to defend or represent a client in legal proceedings, or advice on commencing, avoiding or assessing such proceedings.
Particularly relevant indicators include:
- Complex corporate structures without a legitimate commercial explanation
- International transactions via high-risk countries
- Clients who refuse to provide information on the purpose of the transaction
- Abnormal payment patterns, for example via intermediaries or large cash sums
These indicators may point to money laundering.
Law firms can be exploited because they frequently handle high-complexity mandates and significant economic values. Clients may seek legal advice to establish structures that legitimise illicit funds and thus misuse the lawyer’s position of trust.
A law firm must, among other things, work with:
- Customer due diligence and identification of beneficial owners
- Risk-based controls of client mandates
- Ongoing monitoring of business relationships
- Reporting of suspicious activity to the Swedish Financial Intelligence Unit
These measures are central to complying with the Anti-Money Laundering Act.
An anti money laundering lawyer can help interpret the Act, perform risk analyses and design internal procedures for CDD and reporting. They can also train staff and ensure the firm follows both statutory requirements and the Bar Association’s guidance, strengthening regulatory compliance and trust through targeted AML compliance services.
Read more about our services
AML legal counsel
Engage our AML legal counsel when your anti-money laundering framework needs to be business-led, robust and practically implementable. We support governance, customer due diligence and risk classification as well as reporting and monitoring processes, enabling the business to operate consistently and stand up to scrutiny.
General risk assessment
Morling Consulting produces your general risk assessment to establish a clear risk profile and translate it into internal procedures. With our support you receive a risk assessment, a method for risk classification and updated internal procedures, with a particular focus on financial services and accountancy and bookkeeping firms.
Customer due diligence
Bring in support for customer due diligence/KYC when processes and documentation must be consistent and robust, for example in financial services and bookkeeping operations. We strengthen onboarding and ongoing monitoring, templates and control points, with a focus on practical requirements for identification, risk classification and traceable documentation.
Contact us
If you prefer phone, please feel free to contact Felix Morling at +46 70 444 42 85
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