We’ve compiled answers to the most common queries received since January 2025.

1. Does the MLRO have to be a partner in the firm? 

   The person appointed as Money Laundering Reporting Officer (MLRO) does not have to be a partner in the firm. They should have sufficient seniority and a satisfactory understanding of the firm’s money laundering and terrorist financing risks, enabling them to make decisions that impact the firm’s risk exposure.

2. Does a MLRO have to be registered with the Law Society? 

   No, the MLRO does not currently have to be registered with the Law Society. However, the Law Society will require the identity of the MLRO as part of our regulatory inspection process, and this will be noted in the investigation report. 

3. I have been contacted by a potential client about acting for him in a matter. I have outlined to him a number of times that I need documentary proof of id and proof of address but he has not provided me with any. Can I proceed to carry out the work? 

   If you cannot complete the required client due diligence in relation to identification you should not act and you should consider whether, based on the nature of the interaction with the party seeking to engage you, you need to file a suspicious transaction report (STR).

4. What should I do if I suspect money laundering during the course of a transaction? 

   If you know, suspect or have grounds to believe that a client is involved in money laundering or terrorist financing, you must make a suspicious transaction report (STR) to the Financial Intelligence unit via goAML and to the Revenue Commissioners via ROS. Importantly, you must not tip off your client before filing the report.

5. Should your practice be registered with goAML? 

   The Law Society strongly encourages every practice to register with goAML. There is no cost entailed in doing so and the advantage of being registered means that you are prepared and knowledgeable about the process involved should you need to file a suspicious transaction report (STR). Ireland’s Financial Intelligence Unit (FIU) will not accept STRs in any other format.

6. I am about to set up in practice as a sole practitioner for the first time. I am looking for information on how to go about drafting various AML documents that I know I am required to have. Does the Law Society have any guidance it can offer? 

   The Law Society’s online AML Hub contains general guidance for solicitors on AML including sample template documentation for Policies, Controls and Procedures, Business Risk Assessment and a Client Risk Assessment. It is important to note that these templates are sample only and need to be adapted to the specifics of your practice risk profile.

7. Is it necessary to retain hard and soft copies of client risk assessments and documentary evidence obtained as part of same? 

   Documentation can be maintained in either hard or soft (electronic) format if accessible and can be easily retrieved, if required. Records must be available for inspection by the relevant authorities, for example, An Garda Síochána, Revenue Commissioners, the Criminal Assets Bureau. CRAs and CDD documentation must also be available on file for Law Society inspections. See Section 55 Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended)

8. Why do Law Society inspectors also review files for AML compliance? 

   Section 60 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended) designates the Law Society as the competent authority for supervision of solicitors to monitor compliance with AML legislation. All Law Society inspections are conducted to ensure compliance with AML requirements, Solicitors Accounts Regulations and the Solicitors Acts. We can also conduct standalone AML inspections.

9. Why do I need to identify beneficial ownership? 

   Identifying beneficial ownership assists in preventing criminals and organised crime gangs (OCGs) from hiding behind complex structures or nominees to disguise their control of assets or illicit funds. 

10. What information are solicitors entitled to access to check beneficial ownership? 

    Solicitors can view the name, month and year of birth, nationality, residency, and the extent and nature of the beneficial interest held by each beneficial owner.

11. What checks do I need to undertake in relation to limited companies? 

    When acting for a company you must identify and verify the beneficial owners as part of the client due diligence (CDD) checks. A beneficial owner is generally any natural person who ultimately owns or controls more than 25% of the shares or voting rights or otherwise exercises control over the company.

12. What should you do if the beneficial owner refuses to provide CDD documentation? 

    In such circumstances, you cannot complete CDD. You must decline to act, end the business relationship, and consider filing an STR. You must also retain your records for a minimum period of 5 years.

13. What is source of funds in AML? 

    Source of funds (SOF) refers to the immediate origin of the money being used in a particular transaction. You must verify that the moneys coming into your client account are coming from a legitimate source that is consistent with your knowledge of your client. You should document SOFs. If you choose not to obtain documentation in relation to SOFs, you need to document the reason as to why you decided not to.

14. What is source of wealth in AML? 

    Source of wealth refers to the overall origin of a client’s accumulated financial resources. This is a broader and often more complex analysis than SOFs, and involves understanding a client’s long-term financial history, including their career earnings, business interests, investments, inheritance, or other significant financial events.

15. How long should I keep AML Documentation? 

    All AML documentation including the documentation used to verify your client’s identity and address, must be retained for a period of not less than five yearsfrom the date you cease providing legal services.

AML Support

The AML email service provides guidance and assistance to solicitors but does not and cannot provide legal advice. If you have an AML query please contact AML@lawsociety.ie

For other resources and guidance, visit the Law Society AML Hub